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COPYRIGHT DEPOSIT. 




Home Office of the Company 



SEMI-CENTENNIAL HISTORY 

OF 

The Northwestern 
Mutual Life Insurance Company 

OF 

MILWAUKEE, WISCONSIN 

1859 — 1908 



Published by Authority of Its Executive Committee, Under the 

Supervision of a Special Committee Consisting of 

George H. Noyes, George C. Markham 

and Frederick C. Winkler 



MILWAUKEE 

1908 



UBKARY of OONGRESS 
Iwtt OODles deceive* 

JUL 18 l^a 

XAo. No. 

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COPYRIGHT, 1908 



THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY 



TO 

THE POLICYHOLDERS OF THE NORTHWESTERN MUTUAL 

LIFE INSURANCE COMPANY 

WHO CONSTITUTE THE COMPANY 

THIS VOLUME IS RESPECTFULLY DEDICATED 

BY THEIR TRUSTEES 



PREFACE 



The purpose of this book is to present in permanent form 
a statistical history of the records and events which have 
chiefly contributed to the growth and development of The 
Northwestern Mutual Life Insurance Company during the 
first fifty years of its existence. The compilation is by 
Henry Franklin Tyrrell. 

A complete history of the company cannot be written. 
Well-known facts relative to official management may be 
compiled, but the potency of silent forces, which in manifold 
ways have been at work, is not a matter of record. The 
benefits, direct and remote, which the company has bestowed 
upon the beneficiaries under its policies cannot be measured, 
save, in part, by the lives of officers and agents whose years 
were devoted to faithful service. 

If the work done shall prove of interest and benefit in 
preserving for the members many valuable records of the 
past, and in cementing more firmly their loyalty to the com- 
pany, all who have contributed to its preparation will be 
fully rewarded. 

July, 1908. 



Life Insurance 



"Life insurance comes in as a financial invention by 
which capital in the shape of a productive life — a life 
controlling and directing some branch of the wealth- 
begetting or wealth-distributing machinery of the age — 
can perpetuate itself, or convert a part of its produc- 
tive energy into a contingent fund, that will be im- 
mediately available in case of death. It would be easy 
to show that this is in fact a grand necessity of our 
present civilization. While all other sorts of com- 
munism interfere too much with individual liberty to 
be widely or long tolerated, here is a form of it, which 
allows unrestrained individualism, zvithout the penalty 
of beggary entailed upon dependents or descendants. 
It gives to an energetic young man who has not a 
spare dollar to bequeath, the power of making a will 
good for several thousands in case of his death the 
next day." — EHzur Wright. 

"I regard the institution of life assurance companies, 
particularly on the mutual principle, as among the 
highest and most beneficent of our Christian charities. 
They are benevolent in their inception and administra- 
tion; they are every way beneficent in their results." — 
Rev. Dr. Farley. 



Early History of Life Insurance 



THE first and strong impulse of the historian, especially if 
he be an enthusiast, is to make the institution of life 
insurance venerable, founding it away back in the dim old 
ages, only to break it out impressively from amid the gloom of 
ignorance into a grand affair having something of the form and 
substance of the present system. 

Writers on other kinds of insurance, be the same fire, marine 
or indemnity, find authority for maintaining that these are primi- 
tive practices, and their citation of ancient authorities in aid of 
this contention is quite impressive, but the chronicler of life 
insurance searches diligently, though vainly, for traditional data 
on which to found a belief that this is one of the institutions the 
passage of time has crowned with the glory of ages. 

True, he finds mutual benefit revealed in the actions of the 
early Christians who sold their earthly possessions and held 
everything in common, for it is written "as many as were pos- 
sessors of land or homes sold them and brought the price of the 
things that were sold and laid them at the apostles' feet and dis- 
tribution was made unto every man according as he had need." 

And if life insurance of some description were not meant, 
what could, forsooth, be the intent of the old precept: "He 
that provideth not for his own, and especially for his own house, 
hath denied the faith and is worse than an infidel?" Or what 
meant St. Paul in his address to the men of Athens reported in 
Acts 17-31 when he said He "hath given assurance unto all 
men?" 

Possibly one could justify his conscience by giving the 
Romans credit for pioneership in one of the essentials of life 
insurance — the mortality table — but when old Pagan life, with 
its plagues, wars and habits, is recalled the preponderating pre- 
sumption arises that the ancient Romans had little to do with 
life insurance. Premiums would have been prohibitive in those 
primitive days, u 



12 Early History of Life Insurance 

However, in the development of their jurisprudence, they 
were obliged to provide for life estates and some method of 
fixing the values of such estates was necessary. 

The one first adopted assumed that all persons who attained 
to the age of thirty years would continue to live to be sixty and 
then surely die. This was a purely arbitrary assumption, but, in 
lieu of a more convincing theory or a practical table, it was 
accepted as a simple solution of a difficult problem. 

The Praetorian Prefect Ulpianus, an eminent Roman jurist, 
seeing the fallacy in the former usage, perfected a mortality 
table in which for the first time in history a distinction was 
made between the different ages, and in which the probable 
number of years of life for each was given. But the principle 
of expectancy thus devised did not appeal to the Romans as 
carrying an essential element of the scientific scheme of life 
insurance, although, as has been written,- the non-existence of 
a scientific theory of probabilities cannot be accepted as a reason 
for the unlikelihood of the early practice of life insurance 
among them. 

Be this all as it may the real facts are that whereas men 
had insured their property against loss by fire and the elements 
for centuries the idea of insuring their lives came slowly to 
them. 

One of the first reasonable examples of the exercise of the 
principles of mutual insurance is found in the old Saxon guilds 
in which "every freeman of fourteen, being bound to find 
sureties to keep the peace, certain neighbors composed of ten 
families, became bound for one another, either to produce any 
one of the number who should offend against the Norman law, 
or to make pecuniary satisfaction for the offense. To do this 
they raised a fund by mutual payments which they placed in one 
common stock. This was pure mutual assurance." 

Following these guilds certain fraternities developed, in 
which the members were required to "swear by the holy reliques" 
that they would be faithful to each other in religious and worldly 
matters ; that when a member died the survivors would come 
to the interment or "forfeit a sextarium of honey;" that assist- 
ance should be rendered a member "standing in need of assist- 
ance" and that in case one took the life of a member, "his 



Early History of Life Insurance 13 

reparatory fine should not exceed eight pounds," but it was 
especially provided that if a member who was poor killed any 
one, and compensation must be made, then if the deceased was 
worth twelve hundred shillings each member should contribute 
a half mark (a little over ten dollars) ; if the deceased was a 
hind, each member had to contribute but two oras (10 s. 4d.) but 
if he was a Welshman, the assessment was only one! 

The laws of these fraternities further provided that in case 
a member killed a member he should make reparation to the 
relatives and atone to his fellow-members in the sum of eight 
pounds. He was disgraced to the extent that fellow-members, 
except only in the presence of the king or bishop or an alder- 
man, were forbidden to eat or drink with him under forfeiture 
of one pound, unless able to prove by the evidence of two 
witnesses on oath that they did not know the person. 

The following rule is also interesting: "If any member shall 
treat another member in an abusive manner, or call him names, 
he shall forfeit a quart of honey; and if he be abusive to any 
other person, who is not a member, he shall likewise forfeit a 
quart of honey." 

Amusing as these rules may appear today, the idea was 
mutual aid and contribution, which after all, is a basic principle 
of life insurance. 

Following the line of development vagrant cases of practical 
life insurance are found in the payment of money for the non- 
return of a pilgrim or a sea-faring man, or even in the payment 
of certain sums of money to the heirs of a deceased annuitant, 
but the whole state of affairs — domestic, legal and general — in 
early days was not conducive to life insurance as it has devel- 
oped into the present magnificent system. 

The first policy of life insurance of which there is any trace 
was issued in London in 1538, insuring the life of one William 
Gybbons for twelve months. This was written by thirteen per- 
sons acting individually and the premium was eighty dollars 
per thousand. However such occasional policies as this did not 
seem to induce a suspicion of the wonderful possibilities of life 
insurance as a business. 

One of the germs to thought intimately connected with the 
subject was early furnished by a Neapolitan adventurer named 



14 Early History of Life Insurance 

Tonti who came to Paris in 1563 and formed associations in 
which members were to pay certain sums in a fund to be invested 
awd divided among the survivors. 

It was found to be a wonderfully productive as well as 
attractive scheme and even governments adopted it to raise 
money in stringent times, but it was a great many years after 
Tonti had passed away that life insurance companies devised 
the tontine policy, recalling his name for the innovation, although 
it had little analogy to the schemes to which Tonti in his life- 
time was a party. 

It is quite possible, too, that Tonti was not the originator of 
the idea he popularized. Historians contend there is reason to 
assume that similar customs had been established in Italy long 
before his time. 

The publicity which attended Tonti's public and practical 
exposition of the scheme above outlined may have later resulted 
in the purchasing of life annuities in the Netherlands in the 
early part of the sixteenth century and if this is the fact modern 
insurers are under everlasting obligations to Tonti for having 
made possible eminent writings which had their later effect on 
the business of life insurance, which were, indeed, stepping-stones 
in its slow development. 

For the first time that essential element of life insurance, the 
law of probabilities, began to attract attention and it is par- 
ticularly interesting to note that the impetus for any considera- 
tion of probabilities applied to human life, came from the gaming 
table. This interest is augmented, too, when one considers that 
the business of life insurance was founded by a clergyman. 

The great French thinker, Pascal, was the first to lay down 
the principles of the doctrine of chances but the first to apply 
these principles to a practical subject was Jan de Witt, Grand 
Pensioner of Holland and West Friesland, when commissioned 
by the States-General in 1671 to devise a plan for making a 
loan. He recommended life-annuities based on probabilities. 

The real significance of probabilities had not yet dawned on 
the unawakened minds of our forefathers and time went on 
until terrific plagues took off so many thousands that in order to 
disprove the resulting exaggerations as to the number of dead, 
bills of mortality were ordered in England. These, with the 



Early History of Life Insurance 15 

registers required by command of Thomas Cromwell in 1538, 
furnished the foundation for the first English work on the 
subject, a book published in 1664 and written by John Graunt, a 
plain tradesman in the eyes of his neighbors, but a philosopher 
of the first water. 

Graunt submitted many an erudite proposition to his readers 
and while his ingenious deductions from novel premises were 
wonderful then, they are in a measure now only diverting. One 
of his serious efforts was to deduce a law of expectancy from 
records of deaths without the ages of persons. 

Even then the science of life insurance was not evolved and 
it is with chagrin the recorder of facts is obliged to note that 
the next step in its development was through the medium of 
usurers — men of the stripe of the notorious Audley and Judah 
Manasseh Lopez — who were shrewd enough to apply probabili- 
ties to financial transactions in granting annuities, taking advan- 
tage of the early estimates of longevity and trading on the 
ignorance of their clients. But this period must be given credit, 
nevertheless, since it quite probably resulted in calling the atten- 
tion of Dr. Halley, the then Astronomer Royal of England, to 
the question of life contingencies and resulting in the publication 
by him in 1693, of the famous Breslau Table of Mortality. 

"It is not a little strange," says Walford, "that while England 
was the theatre destined for the correct development of life 
assurance, she could not of herself furnish the data upon which 
its practice was to be built." The unrecorded ages in the 
English parish registers made them practically useless for scien- 
tific purposes. 

But even the Halley table gave no immediate impetus to life 
insurance. His wonderful work was filed away only to be 
unearthed and subsequently used by those who appreciated its 
value, as were the works of numerous other distinguished writers 
and philosophers. 

A fund of speculation was indulged about this time by 
learned men of all the principal continental countries, but it 
failed to awaken a real appreciation of the wonderful business 
into which life insurance afterward developed. For years, 
strong men — men of great business capacity, students and think- 
ers — saw nothing in the probabilities of life to presage or justify 



1 6 Early History of Life Insurance 

the magnificent system that now prevails as life insurance. 
These writings, however, must have revived attention to the 
early example of yearly insurance above noted, for another policy 
was issued in 1697, on the life of Sir Robert Howard for one 
year from the third day of September 1697, and it is most inter- 
esting to note that on the same day in the following year the 
insured died, but the merchant who had made the contract 
refused to pay it on the ground that the policy had expired. 
Then it transpires that this pioneer policy of life insurance — 
one of the first of which there is historical note — was the subject 
of litigation, and it may not be amiss to say that the foundation 
was then laid for further traditions in the insurance business by 
the prompt defeat of the insurer. Lord Holt, who presided at 
the trial, held that the phrase "from the day of the date" 
excluded the day itself. 

A clergyman is entitled to the high honor of having really 
started life insurance although the project he proposed did not 
succeed. In 1698 Rev. William Assheton, D.D., Rector of Mid- 
dleton in Lancashire, England, proposed an organization "for 
the benefit of the widows of clergymen and others and for 
settling of jointures and annuities." This led to the formation 
of the Mercers' Company, in London, which undertook the 
annual payment of £30 to any widow whose husband had, in his 
health, subscribed £100 to the fund. The company soon discov- 
ered that it had been formed on a poor foundation and it low- 
ered the annuities. Later it could not meet its engagements and 
finally sought royal relief. 

The following year, 1699, another similar organization was 
formed and called "The Society of Assurances for Widows and 
Orphans." These two societies flourished for a short time, but 
lacking correct data on which to operate, passed out of existence. 

This brings the chronicle down to the first real life insur- 
ance office ever opened in any country, to the establishment 
of the Amicable Society, or Perpetual Assurance, in 1706. 

The Amicable was well named. Professor de Morgan says 
it was "originally founded rather on the principles of mutual 
benevolence than of mutual assurance," but it went directly to 
work under its charter, insured lives, paid annual dividends and 
strenuously opposed the further chartering of competitors. 



Early History of Life Insurance 17 

The basis on which the Amicable did business was crude. 
There seemed to be no sort of selection and an arbitrary premium 
of £5 per hundred was charged irrespective of health or age, 
probably because it was vaguely understood that the ratio of 
annual deaths in London was one in twenty, which would have 
been a reasonable proposition if the company could have insured 
every person in London. It could then have used all the mem- 
bership fee and interest for running expenses, and still have 
money enough to pay losses, but its charter expressly limited it to 
a membership of 2,000. 

In the following year there began a period of speculative 
insurance that ran rampant for years. 

In 1707 one Charles Povey, who is the original of the modern 
"promoter," projected a company for 4,000 healthy persons 
between the ages of 6 and 55 under the name, "The Proprietors 
of the Traders' Exchange House." Every subscriber was to pay 
2 s. 6 d. per quarter, for which premium £300 were to be equally 
distributed to the nominees of the assured persons dying in the 
quarter, with one half-penny from the clear profits of the printed 
papers sold by the office; for it must be understood that here 
originated the custom of publishing periodical papers in aid of 
the business. As Walford says : "These publications have 
proved a valuable addition to our historic literature and were 
most likely conducted at a far less expense than many offices 
now go to annually in advertising." Some of these papers 
developed into thick octavo pamphlets, which were sold to the 
public and thereby made a source of profit. His insurance com- 
pany, however, died an early death. 

Povey was a public poseur, for history next reveals him as 
the author of a publication entitled "Unhappiness of England, 
as to Trade," in 1708. Shortly thereafter he projected the Sun 
Fire Office and sold it to persons who constituted themselves 
into a company in 1710, that has since developed into the well- 
known Sun Fire & Life Company. Francis says of Povey that 
"not contented with establishing an office to insure against the 
chance of fire, he invented also a scheme to extinguish it, and 
'Povey's Fire Annihilator' was a feature of the time!" 

It was about this time — from 1708 to 1712 — that what were 
known as "the little goes" of insurance were in full sway, appeal- 



18 Early History of Life Insurance 

ing to the speculative mania then epidemic in England and 
finding thousands of easy victims. Everything involving a 
chance was subject to insurance. As Francis says: "If one 
company began to insure marriage portions, a second was sure 
to follow to insure the portions of their children." Everything 
and everybody were given some sort of opportunity to be 
insured and the state of affairs may be appreciated when it 
took but four years to so thoroughly run the public into all 
manner of insurances that a stop had to be put upon them, 
which was finally accomplished by exacting a penalty of £500 
of their promoters. 

"Unfortunate as the bubble insurance companies might be," 
says Francis, "uninformed and unintelligent as their conductors 
proved, and ruinous as they were to the people who trusted 
them, they were a movement in the right direction." 

From 17 12 to 1720 was one of comparative insurance 
quietude. The Amicable had now a history of nearly fourteen 
years behind it, and the experiences of the speculative period 
were being fairly well forgotten. In 1720, however, some of the 
first merchants in London met in Mercer's Hall to petition the 
crown for a charter to make marine and other assurances. The 
petition was well-timed, says Francis, as upward of one hundred 
and fifty underwriters had recently failed, and many merchants 
having fallen to the ground with them, there was every reason 
in the public clamor for a safer and more secure mode of invest- 
ment. 

About the same time another company of "knights, merchants 
and citizens of London" had petitioned with the same object. 
One body was known as the Royal Exchange and the other the 
London Assurance Corporation. A charter was granted each in 
1720 and they wrote an immense marine insurance, it being a 
fact that neither was authorized by its original charter to 
write life insurance. Yet they were the first insurance com- 
panies in the world to write life policies for a fixed sum payable 
at death. 

The "South Sea Bubble" hit these two companies hard in 
the first year of their existence and they were unable to perform 
some of the conditions under which their charter had been pro- 
cured. They appealed to parliament for relief and got a modi- 



Marly History of Life Insurance 19 

fied charter permitting them also to write life insurance. Wal- 
ford suggests that what had "so suddenly moved" these cor- 
porations to take up life insurance may have been a project 
suggested at or about that time by Sir James Hallett and one 
hundred and thirteen others, for a company to insure lives. 
The petition set out the advantages of life insurance in a manner 
that embraced all the essentials and might well be used today in 
soliciting. Its simplicity is diverting. It confidently maintained 
that life insurance would be of great benefit to the subjects of the 
realm, "especially such of them as are in trade, to use in such 
their trade the greatest part of the fortunes they may receive 
with their wives ; and which they might much the better do, could 
they, by laying out some part of the said fortunes, receive a suffi- 
cient competency for their wives to live and subsist upon, in case 
they should, by the chance and hazard of trade, either fail or 
die, without a capacity to make any other provision for them." 
Further, "that it would also be very serviceable to his Majesty's 
subjects could they safely and securely insure upon their lives, 
which would encourage merchants to be more bold in their 
undertakings, because in case of their death before schemes in 
trade succeed, their widows and families might thereby receive 
a benefit in a great measure to recompense the failure of such 
their undertakings. That persons in good offices and employ- 
ments for life may, for the same reason, be induced to make 
provision for their families, who during their lives have an 
opportunity of maintaining them in good credit, but at their 
death very often leave them in slender circumstances." 

The necessity for life insurance was at last apparent. Hal- 
lett's insurance proposition, however, was denied by the crown 
and the Amicable, Royal Exchange and London Assurance were 
the only companies in the world in 1721. 

Life insurance had now entered the investigative stage and 
nearly every mathematician of note made research into the 
science of life contingencies. One of the earliest of their works 
was the "Doctrine of Chances" by Abraham de Moivre, first 
published in 17 18, wherein the chances applied to gaming only, 
and the next, in 1725, applied to the valuation of annuities on 
lives. De Moivre endeavored to show that the decrements of 
life, for considerable intervals of time, were in arithmetical pro- 



20 Early History of Life Insurance 

gression and exhibited tables that tended to prove his conten- 
tion. This was useful at the time, but later investigation proved 
that it was not sound. In 1738 Kersseboom's tables, taken from 
the records of life annuities in Holland for one hundred and 
twenty-five years, were published, and in 1746, an essay on the 
probabilities of the duration of human life by M. de Parcieux 
was issued, based on mortuary registers of French religious 
houses and nominees for tontines. 

In the meantime and in 1742, Thomas Simpson, a mathemat- 
ical genius, enlarged on the theories of Halley, de Moivre and 
others and made a mortality table from London experiences. 
This Simpson was an exotic. Francis says of him that before 
he came to London his life had been a vagrant one. He had 
cast rustic nativities, told fortunes, advanced courtships and 
"occasionally raised his vagabondism by undertaking to raise 
the devil!" But he published at least four different works that 
were of great benefit. 

James Hodgson in 1747 made the first effort to show the 
value of annuities from London mortality and in Corbyn 
Morris' book on the growth of London in 1751, a proposal was 
made to reconstruct a mortality table. The first person, how- 
ever, to point out the utility of such tables in calculating life 
insurance premiums was James Dodson. In 1760, M. Buffon 
published a table of probabilities based on French parish 
registers. 

Up to this time, as Hendriks says, "no plan of life insurance, 
in its proper form of development, as an assured provision of a 
fixed minimum amount of money payable at death, whenever 
that may occur, the risk thus extending from the date of the 
insurance, being effected, up to the expiration of the whole term of 
life, had been contemplated by a company or society, or had been 
considered by any legislature in Europe, prior to the year 1760." 

The fact is, as Walford so tersely states it: "Notwithstand- 
ing the brilliant array of names associated with the science, the 
practice of life insurance had been left to a blindfold progres- 
sion ; that chance reigned supreme where all things should have 
been fixed and certain; and that the improvements which from 
time to time crept in, were rather the result of accident than 
design." 



Early History of Life Insurance 21 

About 1760, a petition was presented to the Secretary of 
State's office setting forth the subject for which a charter was 
desired, substantially as follows : "That great numbers of his 
Majesty's subjects, whose subsistence principally depends on the 
salaries, stipends and other incomes payable to them during their 
natural lives, or on the profits arising from their several trades, 
occupation, labor and industry, are very desirous of entering into 
a society for insuring the lives of each other, in order to extend 
after their decease the benefit of their present incomes to their 
families and relations, who may otherwise be reduced to extreme 
poverty and distress by the premature death of their several 
husbands, fathers and friends, which humane intention the peti- 
tioners humbly apprehend cannot be effectually carried into exe- 
cution without his Majesty's royal authority to incorporate them 
for that purpose." 

The charter was held up, however, by the attorney general. 
One of the reasons urged against it was that success of the plan 
must depend on the "truth of certain calculations taken upon 
tables of life and death whereby the chance of mortality is 
attempted to be reduced to a certain standard ; this is mere specu- 
lation, never yet tried in practice, and consequently subject, like 
all experiments, to various chances in the execution." 

In 1762, however, objections and official difficulties were 
overcome and a charter was granted "The Society for Equitable 
Assurance on Lives and Survivorship," which became familiarly 
known as the Old Equitable. 

Manifestly there were defects in the system and practices 
of this company, but it did all that could be expected of a life 
insurance company at that early time. Francis says it assured 
lives for any number of years or for the whole continuance of 
life. It took the price of the assurance in one present payment 
or it accepted annual premiums. It allowed annuities to the sur- 
vivors if they preferred it ; and though the scale might have been 
too high for what we now know, it at least was more businesslike 
than its contemporaries ; for so slow were the latter to profit by 
experience that it was not until the commencement of the 19th 
century that the Royal Exchange availed itself of the North- 
hampton tables to compute its premiums. 

The Old Equitable had not been formed many years when 



22 Early History of Life Insurance 

it had one of those experiences to which modern life insurance 
companies have become accustomed, if not reconciled, which 
may be the better described in the words of Francis in his 
"Annals, Anecdotes and Legends of Life Assurance." 

"In 1765," says Francis, "one of those insolent attempts 
occurred on the part of the state, which reminds the reader of 
an absolute, rather than of a representative government. The 
peace concluded in 1763, followed a war which cost upwards of 
a hundred millions, and the bribery which was necessary to carry 
the treaty through the House had contributed to exhaust the 
treasury. Money was to be acquired, and the people grumbled 
at the taxation necessary to raise it. In this dilemma it sud- 
denly occurred to the ministers that there might be unclaimed 
property in the assurance offices, and by some confusion of right 
and wrong it was thought just to claim this private property for 
the public good. Nothing could more decidedly approach con- 
fiscation." 

The companies vigorously contested the imposition of the 
tax. The question became one of great moment and great 
political interests were involved on both sides. Francis con- 
tinues: "Pamphlets were issued, which distinctly asserted that 
no one would trust a government acting so infamously; that con- 
fiscation of private property to pay a nation's debts was only one 
remove from bankruptcy ; and that no citizen would lend money 
to a government so unprincipled. The propriety and proper feel- 
ing of the people aided the resistance of the offices, and the at- 
tempt was only successful in proving to the state that all arbitrary 
power had passed away, and that for the future an honest course 
would be their best policy." 

In the chartering of the Old Equitable, the real history of 
modern life insurance begins, and it would, no doubt, be interest- 
ing to follow the further English history of the institution, giving 
due credit to Dr. Price, "the unsuccessful Unitarian preacher," 
his illustrious nephew Morgan, and other great geniuses of life in- 
surance calculations, as well as depicting the various progressions 
and corrections in mortality tables, but the scene must shift to 
another shore and progress be noted there, for while England 
developed the business of life insurance, the United States of 
America perfected it. And there this history must be continued. 



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or. i nith tb ■ fa .! Cntpor-.:inn for the Relief of ponr and diftreff- 1 Preibyfiian Miniftcrs, and 'of the poor and il i 

rand Children of Prefbyterian MinUters, by chafe Prcfenrs, in Manner and form following, That is ro fry, THAT he the faid 
e^j«^t.<v«V e^Ctifiwt-' lliall and will during the Term of his natural Life, yearly, and every Year, pay, or cauie 

t»bepaidontb*i5 l 5*V!^</^y?"t*<' .Dayof \s%>-et^£, in each Year, the Annuity or Sum of jrfsCvC' 



t>£wun-t£&. qjfrcnt Money of the Provinccof 

Order : Whereof the lirft Payment wasmade'on tlic^f*"-*-- --jr. -"iwnw ~»j «■ ^.^^y ,- nun nm 

That on the Marriage of the faid &*A»uot4+ \Sftid-<rnJ' and as often a3 he (hall marrv^/The faid &"U&n*C4<f 
*~4~£iy<l-imS lhalland will on eyery fuch Marriage, pay, or caufe to be paid unto the faid Corporation, and their 

Succeffors, the Sum of jeJisyi- Founds over and above the laid Annuity. And^he laid Corporation, for themfelvcs 

ond their Succeffors, do covenant, promife, grant, an.! aerec to and v.'uh the faid &gqiru±t<r •sfCc-J <ry-*s his IL,' -, 

lexeeeit.irs and ,\ Iminiilrators, by thefe Prefents, That if the faid SFreyt^, C**f ^f-&-<ff^%, — - Jhall well and faithfully fulfil 
ond perforin hi erC ovena.it atuiefaid, by paying, or cauftng to be paid yearly and every'Year, at the Day. and Times abuv - 
jnr-rtionad during his natural Life, the laid Annuity or Sum of ^if-^-fC -JisOusndU'V the faid Corporation, th-.-'r 

Succeffors, ot Order, according to the true Intent and Meaning of thefe Prelents; tfien, and in iuch Cale, bur not otherwise, i ■■ 
S.ii Cei.pur^'ian and th.n Seicceffors, fhall and will yearly and ev ery Year from and after the Deceale of the laid G^wo^^j^f 
^yitcJ-ir^y- _ well and truly pay, or caufe to be paid to theWidow and Children, or Widow, or Children, [if an,-;, of 
the faid <5*W**-«V . t-n*&tf^*w., the Annuity or Sum ot" -iHu&n&j <r~t*ij~ ^urvta^ei^C, current Money afore- 
Said, during the Term, in the Proportions, and in "the Manner- and Form a^bscxpreffed I I mention! land fit fin he. 
laaEIaaaf Agr 'merit beta ecn faid CorooutionjajadjieannjejalCtinLrioutors, wMchibj tlusTurr)pfe;stoihefsPtsfcnt5a.nne..>:.l. 

Ill W ItneiS Wnereor, ,jj, c Corporation for Relief of poor and difrreffed Prcfbyterian Miniftcrs, and.oF the poor and 
diftreffed Widows and Children, of Eis^Kriaa Minifteisj HATE jut their common Sead to thJse PREsatiis, the Day 
and Year fiift above-written. 





"O 



Antique Form of Insurance Contract 



Early Life Insurance in the United States 



1IFE insurance was founded in this country long before the 
Revolutionary War, and indeed, the United States enjoys 
the distinction of being the home of the oldest, continuous, 
exclusive life insurance company in the world. 

The career of that company must necessarily be attractive to 
students of the science of life insurance and the historical data 
connected with it will prove interesting to others. 

In iyiy the Presbyterian Synod of Philadelphia created "The 
Fund for Pious Uses" to be subscribed by friends and distrib- 
uted according to the discretion of the Synod. This fund, it 
develops, was appropriated for all manner of good and benevo- 
lent purposes, including the relief of needy ministers and their 
families and this suggested a separate fund for that special pur- 
pose. In 1754 a proposal was consequently made to devise some 
plan for the support of ministers' widows and on the 30th day of 
May 1755 a plan was adopted providing for the annual payment 
of a fixed sum by the ministers in consideration of the payment 
of a stated annuity to their widows and children. This was called 
"The Widows' Fund." Naturally a mutual insurance organiza- 
tion like this could not long exist merely as a voluntary institu- 
tion, and a committee was consequently appointed by the Synod 
in 1756 to make application for a charter. 

This being a solemn proceeding, the petition was made in a 
becoming manner, involving all the dignity of those early days 
and certainly following all their ceremonies. 

The petition was addressed to "the Hon. Thomas Penn and 
Richard Penn, true and absolute Proprietaries and Governors-in- 
Chief of the Province of Pennsylvania and Counties of New 
Castle, Kent and Sussex upon Delaware" and contained the fol- 
lowing pathetic representation : "As our lot is cast among people 
who are generally low in circumstances, and many of them form- 
ing new settlements in the frontier counties, and, as we have no 
other support but a small and very uncertain income from the 



26 Early Life Insurance in the United States 

good-will of our people, joined with our own labor, we have 
always found it difficult to make any tolerable provision for our 
families ; and have often, with sorrow and regret, seen the widows 
and children of great and good men, who were once of our num- 
ber, very much pinched and distressed by want and poverty, with- 
out being able to afford them suitable relief." 

But there was another side to the petition that was likewise 
appealing. The petitioners had discovered that there were "bad 
economists" in their society and represented that "these men 
among us are most backward to pay their quotas whose families 
will stand in most need of relief when they are dead." 

They also called attention to the fact that as the society was 
voluntary and without ai:l of the law to enforce its contracts, they 
ought to be chartered and concluded as follows : "You will merit 
the blessings of the widow and fatherless, and lay us under the 
strongest obligations of gratitude and affection, if you be pleased 
to make us a corporation by your charter." 

The charter was duly granted and on the 6th day of February 
1759 was "thankfully accepted" by the Synod. "The Widows' 
Fund" of 1754 thus became, five years later by charter, "The 
Corporation for the Relief of Poor and Distressed Presbyterian 
Ministers, and for the Poor and Distressed Widows and Children 
of Presbyterian Ministers." 

The society began its operations immediately and a copy of 
its first formal policy contract will be found reproduced in this 
volume. 

This society has kept up its beneficent work and preserved its 
organization throughout varying vicissitudes and takes unto itself 
the credit of being not merely the pioneer life insurance organiza- 
tion, but the originator of the "non-forfeiture" principle of life 
insurance in 1792 and the "cash surrender value" principle in 
1852. 

In 1856 the name of the corporation was changed to "The 
Presbyterian Annuity Company;" in 1875 it was again changed 
to "The Presbyterian Annuity and Life Insurance Company" and 
in 18S8 to its present title "The Presbyterian Minister's Fund for 
Life Insurance." 

As all these names indicate, the company is limited in its bene- 
ficiaries to Presbyterian ministers, but at one time, from 1875 to 



Early Life Insurance in the United States 2j 

1882, it did a general life insurance business. It is still in exist- 
ence, a splendid witness to the permanency and stability of mutual 
life insurance. 

It is interesting to note, too, that Philadelphia was not only 
the home of the first life insurance company, but that it led in 
pioneer ship in the life insurance business. February 7, 1769 
"The Corporation for the Relief of the Widows and Children of 
Clergymen in the Communion of the Church of England in Amer- 
ica" was incorporated and after suffering lapses and relapses 
ultimately came to be a successful institution. 

One of the best opportunities of life insurance was lost, how- 
ever, by Boston in 1772 when one William Gordon wrote the 
first pamphlet ever issued in America, giving the outline of a 
"Plan of a Society, making Provision for Widows by Annuities 
for the Remainder of Life, and for Granting Annuities to Per- 
sons after Certain Ages." 

Gordon's pamphlet is an intensely interesting document read 
in the light of experience and shows him to have been a man of 
most remarkable prescience, some of his ideas being positively 
prophetic. 

The preface to this pamphlet is especially noteworthy and is 
in part, as follows : "The painful circumstances in which num- 
bers are involved, when aged, or deprived of that or those on 
whom their support chiefly depended, are too notorious to require 
a recital. But that same Divine Wisdom, which allows and orders 
the existence of these calamities, has mercifully, and in proof of 
his providence, so directed its manner, as to admit of their being 
greatly alleviated, by the joint endeavours of mankind. Casual- 
ties, decays and death cannot be prevented, and separately con- 
sidered appear to be under no particular regulation ; and yet, 
when viewed collectively, are in a certain proportion, as has been 
confirmed by long and repeated observation ; so that many, by co- 
operating with each other, may secure individuals from those 
hardships they must otherwise experience; and that, on terms 
with which a reasonable and humane person will readily comply, 
for the relief it must afford him to recollect, that he and his fam- 
ily are thereby insured, tho' in the other way they should never 
be benefited." 

The author called attention to the existence of life insurance 



28 Early Life Insurance in the United States 

societies in England, particularly London, and desiring to con- 
tribute his mite to the happiness of the colonists, outlined a plan 
of a society much more comprehensive than any then existing. 
Such societies, Gordon maintained, "besides being serviceable to 
individuals, will, after a while, prove of great public utility ; not 
only by encouraging matrimony, but by furnishing large sums of 
money to be loaned out ; through the help of which, young indus- 
trious planters may push their improvements to the further en- 
richment of the community; others may be assisted in large and 
profitable undertakings ; and interest may be reduced to a more 
moderate state, or the exacting usurer's methods of increasing it 
beyond what is legal, be prevented." 

William Gordon's genius rested not with his preface ; he went 
into the minutest details of the management of the society he 
proposed and suggested rules for the various exigencies that oc- 
curred to him. 

The design being to establish, as he wrote, "not a company of 
a few members who shall make a particular advantage, and en- 
rich themselves by insuring smaller benefits to others ; but a so- 
ciety where all shall be joint proprietors * * * and have 
equal rights and receive their full advantage in proportion to 
their several payments: And as the Society should be large; that 
so the casualties, by being greatly divided, may the less affect its 
capital, and the annual contingencies may come the nearer to an 
equality ; and yet not too large, lest its good government be pre- 
vented ; or the greatness of its stock in a distant period, should 
induce persons of power, having no right to interfere in its con- 
cerns, let it be agreed by Article I that the Society may consist of 
two thousand persons who should at admission in point of age be 
clear of either extreme, and inhabit within certain limits." 

He proposed two classes of membership : Those desiring to 
secure annuities to survivors and those who were purchasing an- 
nuities for the remainder of their own lives, and he wisely ob- 
served : "Prudence and equity require that they of the first class 
should not be exposed, from their residence, calling or manner of 
life, to peculiar dangers, beyond what belong to mankind in gen- 
eral ; and yet, that no objection should arise from serving in the 
militia, that being the constitutional defence of the whole com- 
munity, and so implying the safety of the smaller societies." 



Early Life Insurance in the United States 29 

As no danger arose to the society from any increased hazard 
to members of the second class, Gordon did not further pursue 
his observations on this line, but immediately proposed the second 
article relating to members, requiring them to be not younger 
than twenty-one nor older than sixty years of age, and residing 
within limits to be "specified as may be concluded on, after ma- 
ture deliberation, by the first members." 

That the society might be secured from frauds and imposi- 
tions, the third proposed article was, in part, as follows: "Every 
person, proposing to be a member, shall give in, his name, resi- 
dence, age, title or profession : and mention whether married or 
single : if married and intending to secure the benefit of a sur- 
vivorship to his wife, her age, Christian and former name — and 
wherever such benefit is intended, the age, Christian and sur- 
name, and residence of the party for whom it is designed — to the 
directors at one of their meetings, and at some subsequent one, 
shall, if residing within twenty miles, appear personally to be 
examined by them, as to the state of his health, readiness to con- 
form to and be bound by the rules of the society. * * * 
Should the person proposed live at a greater distance than twenty 
miles, then the directors may be satisfied in any other way that 
shall be agreed upon. The policy shall be invalidated where ob- 
tained by fraud, deceit and imposition." 

Looking comprehensively into the future Gordon foresaw 
possibilities that caused him to write : "To rid the society of 
such as may become offensive and scandalous: and to secure it 
from being burthened with payments, before the natural course 
of things require them : and from paying improper persons, it 
may be stipulated by Article IV that "should it happen that a 
member becomes injurious, disgraceful or obnoxious to the gen- 
erality, the expulsion of such a person shall be lawful. * * * 
Should a member become a felon, die or have his death occa- 
sioned in or by a duel : or feloniously make away with himself ; 
or should go beyond the limits agreed upon without a license, and 
there die" * * * in any such case, the benefits under the 
policy shall be forfeited. 

After providing articles encouraging membership Gordon fur- 
ther observes . "It's essential to the existence of the society, that 
the payments should be both fully and regularly made: but, as 



30 Early Life Insurance in the United States 

experience abundantly proves, that whatever time is allowed, 
many will delay performance to the last period, and if not com- 
pelled by a forfeit, exceed; and yet as, should the time allowed 
be very short, or the forfeiture large, there will be a perpetual 
litigation ; and as, after repeated refusal or neglect upon notice 
given, as absolute exclusion should take place," he proposed, in 
case of default in payment of premium for thirty days, a penalty 
of sixpence per day up to two months, when the delinquent 
should be served with personal notice of delinquency, if possible, 
or a notice published in some paper, and should not the delin- 
quency and charges be paid within three months, his policy was 
to be forfeited and the member expelled. 

Assuming that "the society is supposed to be actuated by 
principles of honesty, honor and humanity, and to have no de- 
sign, of inducing persons to secure advantages to themselves or 
relations, by coming into it at the expense of creditors," an arti- 
cle was proposed to cover this contingency and definite rules were 
likewise suggested for proofs of death ; levying of assessments or 
reducing the annuities in case of unusual mortality ; apportion- 
ment of the interest on the surplus annually to the raising of the 
annuities; making the annuities non-transferable; requiring the 
policy to be brought to the place appointed for payment ; equaliz- 
ing the rights of policyholders in the business management of the 
company ; regulating the election of trustees ; requiring them to 
give security for the faithful performance of their trust; provid- 
ing for general meetings of the society ; directing that "so much 
of the monies of the society as shall be judged necessary by the 
directors to answer the current demands thereof, shall be kept in 
the hands of the treasurer; the rest shall be paid at their order 
into the hands of the trustees, to be by them invested in, or se- 
cured upon or by, government or other public or real securities, 
or laid out in the purchase of lands, tenements or hereditaments 
in their names, in such manner as shall be directed, by order made 
and confirmed at two general meetings of the society," and defin- 
ing the powers and duties of officers. 

The article proposed by this early writer, defining the duties 
and powers of directors, before practical experience had shown 
the necessity for many incidental features of the business that 
time has developed, might well form the basis of a by-law for a 



Early Life Insurance in the United States 31 

modern and model life insurance company. His proposed pro- 
vision was as follows : "The directors for the time being shall 
have the care and management of all the Society's affairs, ac- 
cording to the rules and orders contained in the deed, and here- 
after to be made by the body ; shall admit members ; issue orders 
for the signing of policies, the lending, calling in or paying of 
monies; shall appoint, and vary as needful, the time and place 
of their own meetings, the choice, suspension, removal and gov- 
ernment of the Society's servants, together with the salaries and 
wages and all disputes or doubts concerning the same ; shall meet 
at least once in every six weeks ; shall compose a legal board for 
the transacting all business, when and while amounting to seven ; 
shall declare a vacancy among themselves, when any one has 
been absent from their meetings for four successive months, 
without assigning a satisfactory reason for the same; shall grant 
licenses for going and abiding beyond the limits allowed by the 
deed; shall receive the surrender of policies of members quitting 
the Societ}' ; shall examine claims and determine the same ; shall 
compound, adjust and settle disputes relating to the policies and 
the annuities intended to be secured thereby; shall see that the 
accounts be carefully kept and all proceedings regularly entered 
in proper books, all which books, excepting what contain the 
loans of money to private persons, and the ages of the members 
and annuity-receivers, wherein secrecy ought to be observed, may 
be inspected by the several members at proper seasonable times ; 
and shall give all needful directions for accommodating them- 
selves and the Society at their respective meetings, and for secur- 
ing their deeds, books of accounts, etc., and shall take care of the 
regular and punctual payments of the annuities ; and every direc- 
tor, who shall dissent from the proceedings of the Society or of 
the directors, may have his dissent with his reason for the same 
entered in the minute book of the Society." 

As Part II of his remarkable pamphlet, Gordon published 
tables showing "what a person must pay in purchasing a twenty 
pound annuity, to be enjoyed in case of survivorship, by another 
life, the latter not being younger than the former; what a pur- 
chaser must pay, more than in the preceding table, upon every 
year he is older than the intended annuity-receiver, supposing in- 
terest to be at four and one-half per cent ; what annuity the pur- 



32 Early Life Insurance in the United States 

chaser may become entitled to, after a certain period, for the re- 
mainder of life, upon a given sum and what the purchaser must 
give down, besides making a payment annually of five pounds 
till he becomes entitled to the annuity." 

The question of comparative longevity between male and fe- 
male lives was also discussed and Gordon concluded that not- 
withstanding current available colonist records tended to support 
the general proposition that female lives were the better, the fact 
in Massachusetts was that the males not only predominated in 
number but were better risks than females. The pamphlet con- 
cluded with an interesting letter from Rowley, Massachusetts, 
dated March 12, 1772, showing the longevity of that community 
at those times to have been away out of proportion to later and 
general mortality experiences. 

Everything considered the Gordon pamphlet was a wonder- 
ful contribution to the literature of life insurance and that a 
company founded on his propositions was not then formed, merely 
shows the general lack of appreciation of insurance possibilities. 

The purposes of the present undertaking will hardly support 
a full history of the expansion of life insurance in the United 
States. Doubtless, as in Wisconsin, many companies have been 
organized containing a charter provision for the writing of in- 
surance on lives, amounting in the aggregate to hundreds, per- 
haps, and yet of which concerns nothing has ever been heard. 
Besides, reliable data as to the organization of life insurance 
companies are available in few states or cities. Fortunately, the 
records as to Philadelphia have been preserved in the excellent 
work of J. A. Fowler and from this a chronological exhibit of 
the expansion of the business in that city in the early years can 
be given. 

On March 19, 1792 "The Universal Tontine" was there or- 
ganized, but on April 14, 1794 it was chartered as a general 
insurance company under the name of the "Insurance Company 
of North America." It did little life business, writing no such 
policies after 1800, but confined itself to fire and marine under- 
writing in which it made a marked success. 

The next Philadelphia life insurance corporation was char- 
tered March 10, 1812 under the name "The Pennsylvania Com- 
pany for Insurance on Lives and Granting Annuities," but it was 



Early Life Insurance in the United States 33 

not until March 17, 1836 that another was chartered. This was 
the "Girard Life Insurance Annuity and Trust Company." Fol- 
lowing this, however, came new companies in comparatively 
rapid succession. On April 10, 1838 "The Berks County Insur- 
ance Company" became "The Globe Insurance, Life Insurance, 
Trust and Annuity Company" and whatever business it did, says 
Fowler, "seems to have been as various as its title." 

The "Mutual Life Insurance Company of Philadelphia" began 
a career on April 23, 1844 that seems to have ended with its 
incorporation, and in December of the same year the "National 
Loan Fund Life Assurance Society of London" established an 
agency in Philadelphia, advertising a local Board of Directors in 
1846. 

Real mutual life insurance began in Philadelphia by the in- 
corporation February 24, 1847, of the "Penn Mutual Life Insur- 
ance Company," which still exists. An "Equitable Life Insur- 
ance Company" was incorporated March 28, 1848; "The Ameri- 
can Life and Health Insurance Company," on April 9, 1850, suc- 
ceeded by "The Philadelphia Life Insurance Company," and "The 
United States Insurance, Annuity and Trust Company" April 
26, 1850. 

After this period many "mushroom" companies were organ- 
ized but the companies that have endured are solely interesting. 

In point of time, life insurance in Massachusetts follows with 
the "Massachusetts Hospital Life Insurance Company," of Bos- 
ton, chartered February 14, 1818, and terminated in 1893; the 
"New England Mutual Life Insurance Company," chartered 
April 1, 1835 ; the "State Mutual Life Insurance Company," in 
1844; the "Berkshire," in 185 1 and the "Massachusetts Mutual," 
in 185 1. 

The domestic companies reporting to the New York insur- 
ance department as of December 31, i860, with their dates of in- 
corporation, were as follows : "New York Life Insurance and 
Trust Company," April 1, 1830; "New York Life Insurance 
Company," May 21, 1841 ; "Mutual Life Insurance Company," 
of New York, April 12, 1842; "United States Life Insurance 
Company" (which absorbed the old "Howard Life Insurance 
Company") February 25, 1850; "Manhattan Life Insurance Com- 
pany," July 16, 1850; "Knickerbocker Life Insurance Company," 



34 



Early Life Insurance in the United States 



April 18, 1853 ; "Guardian Life Insurance Company," August 5, 
1859 ; "Equitable Life Assurance Society of the United States," 
July 26, 1859; "Washington Life Insurance Company," January 
31, i860; "Home Life Insurance Company," April 28, i860, and 
the "Germania Life Insurance Company," July 1, i860. 

Other insurance companies of early days, with their dates of 
organization, are noted as follows : "Aetna Life Insurance 
Company," of Hartford, Connecticut, May 26, 1820, (began 
business July 1, 1850) ; "Mutual Benefit Life Insurance Com- 
pany," of Newark, New Jersey, January 31, 1845; "Connecti- 
cut Mutual Life Insurance Company," of Hartford, Connec- 
ticut, June 12, 1846; "American Mutual Life Insurance Com- 
pany," of New Haven, Connecticut, 1847; "Union Mutual Life 
Insurance Company," of Portland, Maine, July 17, 1848; "Na- 
tional Life Insurance Company of Vermont," of Montpelier, 
Vermont, November 13, 1848; "Charter Oak Life Insurance 
Company," of Hartford, Connecticut ; "American Temperance 
Life Insurance Company," of Hartford, Connecticut, 1851, and 
the "Massachusetts Mutual Life Insurance Company," of Spring- 
field, Massachusetts, May 15, 185 1. 

The following table gives the name, place of the home office, 
and the dates of incorporation and beginning of business of each 
of the existing life insurance companies in the United States that 
have attained to an experience of fifty years, the order being 
based on the date of beginning business, not the date of incorpo- 
ration : 



Name of Company. 



Home Office. 



Incorpo- 
rated. 



Began 
Business. 



The Presbyterian Min- 
ister's Fund 

Mutual Life Ins. Co. of 
New York 

New England Mutual 
Life 

Mutual Benefit Life 
Ins. Co 

New York Life Ins. Co. 



Philadelphia, Pa. 

New York City. 

Boston, Mass. 

Newark, N. J. 
New York City. 



Jan. 11,1759 

Apr. 12,1842 

Apr. 1, 1835 

Jan. 31, 1845 
May 21, 1841 



Jan. 11, 1759 

Feb. 1, 1843 

Feb. 1, 1844 

Apr. 1, 1845 

Apr. 17,1845 



Early Life Insurance in the United States 



35 



Name of Company. 

State Mutual Life As- 
surance Co 

Connecticut Mutual 
Life Ins. Co 

Penn Mutual Life Ins. 
Co 

Union Mutual Life Ins. 
Co 

National Life Ins. Co. 
of Vermont 

United States Life Ins. 
Co 

Aetna Life Ins. Co.... 

Manhattan Life Ins. 
Co 

Phoenix Mutual Life 
Ins. Co 

Massachusetts Mutual 
Life Ins. Co 

Berkshire Life Ins. Co. 

German Mutual Life 
Ins. Co 

The Northwestern Mu- 
tual Life Ins. Co 



Home Office. 



Incorpo- 
rated. 



Began 
Business. 



Worcester, Mass. 

Hartford, Conn. 

Philadelphia, Pa. 

Portland, Me. 

Montpelier, Vt. 

New York City. 
Hartford, Conn. 

New York City. 

Hartford, Conn. 

Springfield, Mass. 
Pittsfield, Mass. 

St. Louis, Mo. 

Milwaukee, Wis. 



Mar. 16, 1844 

June 12,1846 

Feb. 24, 1847 

July 17,1848 

Nov. 13, 1848 

Feb. 25, 1850 
May 26, 1820 

July 16,1850 

May ..,1851 

May 1, 1851 
May ..,1851 

Nov. 23, 1857 

Mar. 2,1857 



June 1, 1845 

Dec. 15,1846 

May 25, 1847 

Oct. 1, 1849 

Feb. 1, 1850 

Mar. 1,1850 
July 1, 1850 

Aug. 1,1850 

May ..,1851 

Aug. 1,1851 
Sept. 4,1851 

Apr. 12,1858 

Nov. 25, 1858 



Life Insurance in Wisconsin 



THE Northwestern Mutual Life Insurance Company, al- 
though fifty years old, is not the first Wisconsin company 
whose charter authorized the writing of life insurance. 

The records and indices relating to life insurance in this state 
are poorly preserved, owing to fire and early official carelessness 
and it is therefore impossible to present an absolutely true his- 
tory of the business, but available data discloses many more com- 
panies having the right to engage in the life insurance business 
than most persons would believe. Indeed, the charter of almost 
every insurance company organized in Wisconsin in an early day 
had provisions covering the three great insurance features — fire, 
marine and life. It was the fire and marine that most strongly 
appealed to incorporators and the right to "make all kinds of in- 
surance upon life or lives" was merely granted because it was a 
part of the English form that was being followed. 

Life insurance was so uninviting from a business point of 
view that it was seldom considered in the corporate name. The 
following from the New Orleans Courier of February 8, 1836 
shows something of the early state of mind in this country with 
reference to it: "If we are not misinformed the charters of 
some of our insurance companies grant them the power of insur- 
ing lives, but the fact is never published, the reason we know not ; 
surely there can be no greater risk upon insurance of this kind 
than upon any other subject!" 

Green Bay, that Wisconsin hot-bed of history, has the dis- 
tinction of having organized the first insurance company in the 
state — The Wisconsin Insurance Company at Green Bay, incor- 
porated by Act No. 29, Laws of 1838, approved January 9, 1838. 
This company had the most liberal powers, with full right to en- 
gage in all manner of insurance business, including life, but 
either that feature did not appeal to its incorporators or they 
never tried for the business, for it never attained to any prom- 
inence as a life insurance institution. 



{ 



"&* 15R-' 




Life Insurance in Wisconsin 



39 



The early opportunity that was lost to Wisconsin in the life 
field was in the incorporation of the Wisconsin Marine and Fire 
Insurance Company, created by Act No. 36 of the territorial laws 
of 1839, with headquarters at Milwaukee. This company which 
became famous in another line was permitted by its charter to 
do a life insurance business, but so lightly did the incorporators 
hold this grant that they omitted reference to it in the corporate 
name. Had this feature appealed a little more strongly to them, 
it might have become one of the foremost institutions of the 
country, in view of its liberal charter. In addition to the usual 
powers of an insurance company, says Wisconsin in Three Cen- 
turies, it was authorized to receive deposits ; to issue certificates 
therefor and to loan money; but was expressly prohibited from 
exercising banking privileges. This prohibition was disregarded 
by the managers of the corporation who at the very outset issued, 
in exchange for the notes of its customers, certificates of deposit 
payable on demand, of the appearance of ordinary bank bills and 
in denominations of one, three and five dollars, with the intention 
that they should circulate as money. The territorial legislatures 
made vigorous protests against such use of its charter privileges 
by this corporation and finally in 1846 repealed the statute au- 
thorizing its existence. This had no practical effect as the com- 
pany continued to do a general banking business and to issue its 
certificates of deposit until 1853, when it was reorganized as a 
bank under the constitutional laws of the state. 

Other Wisconsin companies in whose charters was included 
the right to do a life insurance business up to 1871, when the last 
company under special charter was incorporated, are as follows : 



Date of 
Incorpora- 
tion. 



Name of Company. 



Headquarters. 



1839 
1850 
1851 



Mississippi Marine and Fire Insurance 
Company 

Globe Insurance 

Company 

Rock River Insurance Company, after- 
ward American Insurance Company 
and Wisconsin State Insurance Com- 
pany 



Sinipee, 
Grant Co. 
Southport 
(now Kenosha) 



Watertown 
and Beloit 



40 



Life Insurance in Wisconsin 



Date of 






Incorpora- 


Name of Company. 


Headquarters. 


tion. 






1852 


Union Protection Insurance Company... 


Madison 


1853 


Marine, Fire and Life Insurance Com- 
pany, afterward Commercial Insurance 










1853 


Phoenix Marine, Fire and Life Insurance 






Company of Wisconsin 


Manitowoc 


1853 


Wisconsin Lumbermen's Fire and Marine 
Insurance Company, afterward Wis- 






consin State Insurance Company 


Madison 


1853 


Mercantile Insurance Company 


Beaver Dam 


1853 


Winnebago Lake Insurance Company... 


Fond du Lac 


1853 


Portage City Protection Insurance Com- 








Portage 


1853 


Xorthwestern Insurance Company, after- 




ward Merchants' and Traders' Insur- 










1853 


Racine Marine and Fire Insurance Com- 






pany of Wisconsin 


Racine 


1853 


Fire Insurance Company of Berlin 


Berlin 


1853 


Dodge County Fire and Marine Insur- 
ance Company, afterward Wisconsin 






State Fire and Marine Insurance Corn- 


Beaver Dam 








1854 


United States Insurance Company 


Milwaukee 


1855 


Racine Marine and Fire Insurance Com- 






pany of Wisconsin 




1855 


Outagamie Marine, Fire and Life Insur- 
ance Company, afterward Appleton 








Appleton 
Milwaukee 


1856 


The Mercantile Insurance Company 


1856 


Northwestern Insurance Company of Ra- 
cine, afterward the Commercial Insur- 










1857 


The Mutual Life Insurance Company of the 
State of Wisconsin, noiv The Northwestern 






Mutual Life Insurance Company 


Milwaukee 


1857 


Capitol Fire and Marine Insurance Com- 






pany 


Madison 


1859 


The Mutual Life Insurance Company of 






the City of Madison 




1865 


National Insurance Company 











Life Insurance in Wisconsin 



41 



Date of 
Incorpora- 
tion. 


Name of Company. 


Headquarters. 


1865 
1866 
1868 
1868 
1869 


Union Insurance Company 

Commercial Insurance Company 

Superior Mutual Life Insurance Company 

Lumbermen's Insurance Company 

The Wisconsin Odd Fellows' Mutual Life 


Janesville 
Waterloo 
Madison 
La Crosse 


1869 
1869 


Wisconsin Mutual Benefit Company 

Northern Wisconsin Mutual Life Insur- 


Portage 

Waupaca 
Alma 

Beloit 


1869 
1869 


Alma Mutual Life Insurance Association 
Mutual Contribution Life Insurance 


1870 


Rock County Co-Operative Life Associa- 
tion 


Janesville 



The constitutional amendment prohibiting the legislature 
from granting corporate powers and privileges, having been duly 
ratified by the people, became operative in November 1871 and 
consequently cut off the further creation of companies by special 
statute, but before the same went into effect, and by chapter 189, 
Laws of 1871, approved March 3, 1871, the "Mutual Life Insur- 
ance Company of the Order of Herman's Sons of Wisconsin" or 
as it is called in the German "Gegenseitiger Versicherungs Verein 
O. d. H. S. von Wisconsin," was organized. This was the last 
company contracting to pay a stated sum of money at the death 
of an insured, created by a special act of the legislature of Wis- 
consin. 

Taking 1871, therefore, as a starting point, further considera- 
tion of the Wisconsin life insurance business will be confined to 
old line companies, there being far too many assessment, mutual 
benefit and stipulated premium companies to mention in this con- 
nection. 

Examination shows that all companies organized since 1871, 
with one or two exceptions, were organized under chapter 86 of 
the Revised Statutes of 1878, providing for the formation of 
corporations "for the mutual support of the members, their fam- 
ilies, or kindred, in case of sickness, misfortune, poverty or 



42 Life Insurance in Wisconsin 

death." One company organized as an assessment company later 
became an old line company and will, therefore, be here men- 
tioned. 

This was "The Natural Premium Mutual Life Insurance 
Company" incorporated and licensed to do business on April 9, 
1895, under chapter 418, Laws of 1891, as amended by chapter 
175, Laws of 1895. 

It issued its first policy June 10, 1895. On February 14, 
1896 it filed its articles of incorporation with the Secretary of 
State as required by chapter 175, Laws of 1895. In 1899 the 
legislature passed a law (chapter 270) relating to insurance com- 
panies operating on the stipulated premium plan under the terms 
of which then existing companies might qualify and change their 
corporate names. This the company decided to do and on Feb- 
ruary 7, 1900 its name was changed to "The Wisconsin Life In- 
surance Company." At the annual meeting of the members held 
July 2, 1902 the following resolution was adopted : "Resolved 
that the company shall reorganize as an Old Line Life Insur- 
ance company, as soon as practically can be so done." The 
officers were also instructed to take the necessary steps to carry 
out this resolution. The directors decided on October I, 1902 to 
make and place the company on the basis and do its business 
thereafter as an old line mutual life insurance company and to 
retain the corporate name, with headquarters at Madison, Wis- 
consin. The company is still in business. 

Having now fully considered the organization of companies 
in the state, incidental features of the business as they developed 
may be considered with promise of interest. 

Aside from special acts relating to the incorporation of in- 
surance companies, the first statute written into the books in 
Wisconsin with reference to the business of life insurance was 
one attempting to regulate it. This was chapter 232, Laws of 
1850, approved February 9, 1850, providing for the incorpora- 
tion of all manner of insurance companies with regulations as to 
the observance of preliminary steps thereto, and requiring agents 
of foreign companies, as a condition precedent to soliciting busi- 
ness in the state, to file with the Secretary of State a verified 
statement showing the amount of capital of his company, the 
manner in which it was invested and whether the capital was 



Life Insurance in Wisconsin 43 

unpaid or not. This law also required a Wisconsin deposit to 
protect policyholders and made special requirements in case of 
loss. As to domestic companies it gave various directions con- 
cerning their affairs and methods of doing business. 

The Secretary of State was, ex-officio, in charge of the then 
small department of insurance, but it was not until 1853 that any 
special mention was made of the business in his reports. Sec- 
tion 23 of chapter 72, Laws of 1853 required that official to em- 
brace within his annual report a condensed statement of the re- 
ports made to him by insurance companies in compliance with 
the requirements of the same chapter. Consequently in 1853 the 
Secretary of State made such report, but his comments on the 
business were confined to deploring the fact that agents were 
ignoring the provision of law requiring financial statements. In- 
deed, this was the principal burden of all reports up to 1855, 
when Alexander T. Gray, then Secretary of State, recommended 
an amendment to the law of 1850 "providing more stringent regu- 
lations and also suitable penalties for the government of the busi- 
ness of insurance, so far as it relates to foreign companies." 

His successor, David W. Jones, in his report of January 5, 
1857 repeated this recommendation and on March 5, 1857 chapter 
89, Laws of 1857, was approved, providing for revocation of 
licenses on neglect or refusal of companies to file the required 
statement. The Secretary of State was also required to make a 
condensed statement in his annual reports of the financial show- 
ing made by companies. This was followed by chapter 103, 
Laws of 1858, requiring all companies doing business in Wis- 
consin, domestic and foreign, to annually file with the Governor 
a more comprehensive statement showing the amount of their 
paid-up capital and the accumulations of which they were pos- 
sessed and specifying the particular securities in which they were 
invested, with the amount of each; the number of policies and 
the amount of outstanding risks thereon ; the several amounts 
received in premiums and from other sources for the current 
year; the amount of losses and the expenses severally for the 
same period ; the amount of claims unpaid ; the amount offered 
for re-insurance; the amount of premium notes, if any, held on 
account of policies upon which the risk had terminated ; the whole 
number of policies issued or continued through their officers or 



44 Life Insurance in Wisconsin 

agents ; the amount of risks thereon, and the gross amount of 
premiums received therefor, in the year preceding their report ; 
the number and amount of losses paid through their agencies, 
and by their officers during the same period. 

All these early laws made no distinction between fire and life 
insurance ; all statutes were general. 

By the terms of this last law the Governor was authorized to 
appoint some person to examine companies when deemed neces- 
sary and provision was made for action in case insolvency was 
disclosed. Agents were also required to procure certificates of 
authority before soliciting business. 

In 1858 began the practice of filing official reports in the fall 
of the year and the next reference to insurance was embraced 
in the annual report of Secretary of State Jones, filed October 
9, 1858. He gave a complete list of companies complying with 
the law, but of all those created up to that time with a right to 
do the business of life insurance only the Commercial and 
Phoenix, of Milwaukee, reported under it. The Merchants and 
Traders ; the Marine, Fire and Life, and the United States, all 
of Milwaukee, filed reports under chapter 232, Laws of 1850. 
None reported any life business. 

In the report of October 10, 1859 the following companies 
appear: The Commercial; Merchants and Traders; Mutual Life 
Insurance Company of Wisconsin, and the Phoenix, all of Mil- 
waukee. The Marine, Fire and Life of Milwaukee failed to 
report. 

The same companies are shown to have reported in i860. 

In the next report on insurance, dated October 10, 1861, 
made by Louis P. Harvey, then Secretary of State, it clearly 
appears for the first time, in the absence of other data and rec- 
ords, that companies reporting under chapter 103, Laws of 
1858, although many were clearly entitled to write life insur- 
ance, failed to take advantage of the grant, for the Mutual Life 
of Wisconsin was the only domestic insurance company that 
reported any life business. 

And so perhaps it will be uninteresting to further follow the 
rise and fall of domestic companies who failed of the oppor- 
tunity to do a life business. It may be interesting, however, to 
note that the general subject of insurance engaged the thought 



Life Insurance in Wisconsin 45 

of officials in reports of 1864-5 an d 6, but with this difference: 
Only abstracts of statements filed by foreign companies were 
given ; those of domestic companies were omitted. 

Thomas S. Allen, Secretary of State, in his report of 1866 
called attention to the fact that the "business of insurance was 
becoming one of great magnitude and one in which all classes 
of citizens of the State are interested." He urged that all com- 
panies doing business in the state, under special charter or 
organized under the general law, should be compelled to report 
to the Secretary of State. He also suggested that "the Secre- 
tary of State should be empowered to close the business of any 
company, foreign or domestic, when in his judgment their securi- 
ties are not such as the law prescribes." 

"In view of the magnitude of the interests involved," he 
wrote, "I trust this subject will receive the early attention of the 
legislature and that the formation of insurance companies by 
citizens of this state to be under the control of the state legis- 
lature will be encouraged by liberal legislation. Large sums of 
money are annually taken out of the state for premiums on poli- 
cies of insurance which can and should be retained in the 
state." 

Chapter 158, Laws of 1867, again required annual state- 
ments of domestic and foreign companies and limited the time 
of filing to February first of each year. Here for the first time 
in the history of insurance in Wisconsin a tax was imposed on 
the business — one per cent on the cash receipts from all sources 
in the state. This was in lieu, however, of other taxes and the 
property of insurance companies was expressly exempted from 
taxation for all purposes. 

In the 1867 report of the Secretary of State the condensed 
statements again appear. 

Secretary Allen called attention to the discrepancy between 
the date of filing statements and that of their annual publication 
in his report of 1868 and suggested that "if the reports were of 
any value to the public they should be published as soon as prac- 
ticable after their reception in proper form for distribution." 
He therefore recommended that these reports be printed separ- 
ately and distributed by the first of April. 

In 1869 he recommended, in view of the growth and impor- 



46 Life Insurance in Wisconsin 

tance of the business, that a system more in accord with that of 
Massachusetts, New York, Illinois and California be arranged. 

These recommendations so earnestly urged in 1868 and 1869 
came to fruition in 1870 when chapter 59, Laws of 1870, ap- 
proved March 14, 1870, was adopted. This was the first 
insurance code in the State of Wisconsin. It imposed a legal 
standard of solvency; its provisions governing investments have 
at all times prevented stock or speculative dealings with the 
funds of policyholders and it safeguarded the organization of 
life insurance companies in Wisconsin, imposing conditions pro- 
tective of insurants. 

This original law, which was all Wisconsin had or needed, has 
since guarded the interests of the people of the state. 

Among other things it required the Secretary of State annu- 
ally on or before the first day of May, to prepare and print in a 
single document, the information contained in the statements 
made under the new code; and on May 1, 1870 the first annual 
report of the Insurance Department of the State of Wisconsin 
was issued. 

Here began the state's supervision of insurance. From 1870 
to 1878 the reports were confined merely to extracts from filed 
statements and there is little of historical value in them. 

The business was developing rapidly, however, and by chap- 
ter 214, Laws of 1878, the Department of Insurance as a separate 
institution was created, the governor being empowered to 
appoint a Commisioner. Philip L. Spooner, Jr., of Madison, 
was commissioned April 1, 1878 and issued the first report as 
Insurance Commissioner. He was also elected to the office when 
it was made elective by chapter 300, Laws of 1881, and held 
office until January 3, 1887, when Phil Cheek, Jr., of Baraboo, 
took the office. Wilbur M. Root, of Sheboygan, was Mr. Cheek's 
successor and held the office from January 5, 1891, to January 
7, 1895, when Dr. William A. Fricke, of Milwaukee, was in- 
augurated. Dr. Fricke introduced forms, blanks and records 
into the department which have been retained ; the first gain and 
loss exhibit employed was used by him in 1895 in the examina- 
tion of the Northwestern and the first policy valuations made in 
the Wisconsin department were made under his administration. 
He was particularly vigilant against assessment companies and 



Life Insurance in Wisconsin 47 

occupied an advanced position in relation to rebating, retaliation 
and unjust taxation. He resigned to accept a position in New 
York City. 

Emil Giljohann, of Milwaukee, succeeded Dr. Fricke, taking 
the oath of office on October 15, 1898 and continuing to January 
5, 1903, when Zeno M. Host, also of Milwaukee, was made 
Commissioner. Mr. Host brought to the department a zealous 
earnestness that reveals itself in the records. He was succeeded 
by George E. Beedle, of Embarrass, January y, 1907. 



General Johnston and Charter Members 



THE story of the incorporation of the company that has 
since attained to international fame under the name, The 
Northwestern Mutual Life Insurance Company, has 
enough side-lights to relieve it from the commonplace. 

To begin properly and to write down exact justice, one must 
credit the organization of the company to General John C. John- 
ston, a unique character even in the pioneer days. 

Comparatively little is known of the early history of General 
Johnston, although tradition has it that he was a schoolmaster 
about the time the United States was engaged in its second 
material difference of opinion with England. Whether he then 
entered the army and there gained his title is not settled, but from 
his activity in local affairs at Catskill, New York, where he lived, 
and his penchant for heading parades on gala-days, there are 
those who incline to the belief that the distinction was more the 
gratuitous offering of an admiring community than the authentic 
commission of a duly constituted authority. 

However this may be, there are those who report that in 1842 
he was engaged in manufacturing invalid chairs which he shipped 
all over the country and sold by means of personal solicitation. 
Illustrative of his methods it is pointed out that he once sent a 
consignment of his chairs to Charleston, South Carolina, whence 
he proceeded in person, hired four white horses, a negro driver, 
a footman in livery and began to peddle his wares in this some- 
what dramatic way. 

He had a persuasive manner and plenty of enthusiasm. Mani- 
festly tiring of the manufacturing life and its limitations, Gen- 
eral Johnston removed to New York City, having been attracted 
by an advertisement of the Mutual Life Insurance Company of 
New York, then recently organized. He quite probably saw in 
the science of soliciting an opportunity for his genius. In any 
event he got a contract with that company and served as agent 
from the years 1847 to : 854- Some interesting, if not strictly 




James R. Doolittle 
Hoel H. Camp 
Luke Stoughton 



James II. Knowlton 
James Bintliff 
Leonard J. Farwell 



Joel Allen Barber 
Matthew II. Carpenter 
John P. Dickson 



General Johnston and Charter Members 51 

authentic, stories of his connection with the Mutual Life are 
reported, one of the most characteristic being that after his con- 
tract had been signed, he planted his desk near the main entrance 
to the office and "wrote" nearly every person who entered the 
door. Indeed, so effectually did the General take advantage of 
his genius and the technicalities of his contract, that when the 
Catskill school-master retired, he took with him a small fortune. 

It has also been written that when General Johnston left his 
little home in Greene County, New York, he took with him to 
the country's great metropolis two former pupils, Henry Hazen 
Hyde and Henry Baldwin Hyde, pere et fils, the one destined to 
ultimately become general agent of the Mutual Life at Boston 
and the other the noted president of the great Equitable of New 
York. 

General Johnston could not have been far from seventy years 
of age when he came west with the proceeds of his engagement 
with the Mutual Life. He bought an immense farm near Janes- 
ville, Wisconsin, and erected thereon a stone mansion that stands 
today an object of interest to visitors in its locality. He had 
hoped to found a fancy stock farm that would bring him wealth 
and fame, but his hopes failed of materialization and his active 
brain sought other diversion. It was men, not brutes, with 
whom General Johnston could best deal. 

The year 1857 was memorable in the financial history of the 
nation and Wisconsin was affected by the prevailing panic, but 
undaunted, General Johnston chose that identical year in which 
to interest the state legislature in the organization of a life insur- 
ance company. He had theretofore been talking the plan over 
with friends and acquaintances at Whitewater and Janesville and 
finally enlisting the names and services of prominent men, he 
caused a bill to be drafted incorporating the Mutual Life Insur- 
ance Company of the State of Wisconsin. 

This was introduced into the legislature by Judge David 
Noggle, one of the charter members, and was duly passed as 
chapter 129, of the Private and Local Laws of 1857 an d ap- 
proved March 2, 1857. 

The company thereby created was restricted to this specific 
grant : The power to insure the lives of its respective members 
and to grant and purchase annuities. It was a purely mutual 



52 General Johnston and Charter Members 

institution and persons insuring therein became members when 
their policies issued, continuing so long as they remained insured. 
The thirty-six trustees were required to be residents of Wiscon- 
sin and were divided into four classes. The real estate the com- 
pany might hold was restricted to that which is now permitted a 
national bank, and the investments were limited to mortgages on 
unincumbered Wisconsin real estate, and government, state and 
municipal bonds. Every five years a balance was required to be 
struck and an equitable share of the profits credited to members. 
A preliminary $200,000 of insurance was necessary before begin- 
ning business and Janesville, Wisconsin, was designated as the 
company headquarters. 

Included within the act incorporating the company was the 
so-called Magna Charta of Life Insurance authorizing a married 
woman to insure the life of her husband and at his death receive 
the proceeds free and clear of the claims of his creditors, limiting 
the annual premium, however, to $300. 

The names appearing in the act of incorporation constitute a 
roll of honor worthy of perpetuation. Most of them are familiar 
to citizens of Wisconsin as those of men who accomplished things 
in those sturdy old times — in the pioneer days whose handicaps 
required more brains to make success than do modern times. 

There were thirty-six men who stood sponsors for the new 
organization and as such are entitled to credit but it is, indeed, 
true that few of these showed any active interest in the company 
after it was incorporated. Of the total number of thirty-six the 
records show that policies were issued on the lives of but eleven. 
Of these, three failed to pay the first premium and the policies 
were canceled "not taken" ; one paid premiums for two quarters ; 
another for one year ; one for two, and but five became perma- 
nent policyholders. These five were Edward Lothrop Dimock, 
Benjamin Franklin Pixley, Simeon Mills, James H. Earnest and 
John Hawkins Rountree. 

Hoel Hinman Camp, of Milwaukee, is the sole survivor of the 
original incorporators. 

The names, with brief biographical data, of the company 
charter members follow : 

Joel Allen Barber born January 17, 1809. at Georgia, 
Franklin County, Vermont; admitted to bar in 1834; located at 




Charles Kuehn 
Edward McKet 
Joseph A. Sleeper 



William Ward Holden George W. Leh 
Morris C. Smith " James H. Earnest 

James Niel Edward L. Dimock 



General Johnston and Charter Members 55 

Lancaster, Wisconsin, in 1837; during more than forty years' resi- 
dence there, held public office two-thirds of the time, serving in 
state Assembly and Senate and national House of Representa- 
tives ; was one of the founders of the Republican party ; died at 
Lancaster in June 1881. 

James Bintuff born November 1, 1824, at Salterhabble, 
near Halifax, Yorkshire, England ; came to America in 1842, 
locating in New York State ; located on farm near Monroe, Wis- 
consin, in 1851 ; later went into dry-goods business; then Register 
of Deeds, Green County; admitted to bar in 1859; in i860 bought 
an interest in Monroe Sentinel; went into the army in July 1862, 
serving gallantly throughout ; located in Janesville, Wisconsin, in 
1870, and became interested in the Janesville Gazette; prominent 
Odd Fellow; died at Chicago, Illinois, March 16, 1901. 

HoEE Hinman Camp was born at Derby, Orleans County, 
Vermont, January 27, 1822. At the age of fifteen went to Mont- 
pelier where he entered the employ of a mercantile institution, 
remaining there four years, when he went to Boston, staying 
there two. Returning to Vermont located at Montpelier and later 
at Northfield. He came to Milwaukee in 1853, and in about a 
year became cashier of the Farmers and Millers Bank, organ- 
ized under the state law. When the national law went into effect 
he organized the First National Bank of Milwaukee and was 
made its first cashier, remaining in that capacity until its charter 
expired in 1882, when on its renewal he was elected president, 
acting eleven years. 

Mr. Camp retired in 1893, after forty years' service in behalf 
of the bank that still exists as one of Milwaukee's leading finan- 
cial institutions. 

In 1894, he organized the Milwaukee Trust Company, of 
which he became president. 

Mr. Camp is public-spirited and prominent in charitable work. 
He was the organizer of the Charity Relief Association of Mil- 
waukee; was for years a trustee of the Chamber of Commerce 
gratuity fund; a trustee of Milwaukee College; the County In- 
sane Asylum and was connected with the Associated Charities. 

Matthew Hale Carpenter born at Moretown, Washington 



56 General Johnston and Charter Members 

County, Vermont, December 22, 1824; in 1843 appointed a cadet 
at West Point, but resigned after two years because of ill-health ; 
studied law and admitted to the bar in 1847, in Vermont; went 
to Boston and continued studies under Hon. Rufus Choate; 
located at Beloit, Wisconsin, about 1848; came to Milwaukee 
about 1858; was originally a Democrat in politics but affiliated 
with the Republican party during the war ; was elected United 
States Senator from Wisconsin in 1869, defeated in 1875 and re- 
elected in 1879; died February 24, 1881. 

John Peat Dickson born April 18, 1808 at Danville, Ver- 
mont; arrived in Milwaukee in 1836, and in 1838 settled on a 
farm near Janesville, Wisconsin ; in 1842 was elected justice of 
the peace in Janesville and served seven years; in 1859 elected 
to state legislature ; was a Republican in politics ; died at Janes- 
ville April 25, 1884. 

Edward Lothrop Dimock, who held policy numbered 9 and 
was the second Secretary of the company, was born in Genesee 
County, New York, October 13, 1819; lived on a farm until he 
was thirteen years old ; removed to Rochester, New York, at 
fourteen and clerked in a dry-goods store there ten years ; re- 
moved to Janesville, Wisconsin, in 1845, en g a gi n g first in the 
mercantile business and then in banking, losing all his accumula- 
tions in the panic of '57; in 1859, turned his attention to insur- 
ance and remained in that business many years. Mr. Dimock 
was mayor of Janesville in 1855; was a director in the old Mil- 
waukee and Missouri Road and was interested in the Janesville 
Gas Works. He was a Mason, an Odd-Fellow and at one time 
chief officer in the Temple of Honor. Mr. Dimock died at 
Janesville, July 3, 1899. 

James Rood DoolittlE born January 3, 181 5, at Hampton, 
Washington County, New York ; studied law in New York and 
admitted to bar there in 1837; removed to Racine, Wisconsin, in 
185 1 ; was elected Judge First Judicial Circuit of Wisconsin, in 
1853, but resigned 1856; elected United States Senator from 
Wisconsin, 1857, and re-elected 1863 ; after retirement from 
Senate, practiced law in Chicago, Illinois; died in Rhode Island 
July 23, 1897. 



General Johnston and Charter Members 57 

Hercules L. Dousman born on Mackinac Island in 1800; 
when he became of age entered employ of American Fur Com- 
pany under management of John Jacob Astor; went to Prairie 
du Chien, Wisconsin, in 1826 as confidential agent of the com- 
pany and in 1834 became a partner in the business ; was a man of 
business genius and had wonderful control over the Indians ; died 
at Prairie du Chien, September 12, 1868. 

James H. Earnest, insured under policy numbered 364, was 
born at Bowling Green, Kentucky, in the year 181 8. He received 
his schooling in that town and when but seventeen years of age 
came to Wisconsin, locating in the little village of New Dig- 
gings, Lafayette County, where he immediately engaged in min- 
ing. This proved to be a most successful venture for him and 
a few years later he opened a general merchandise store, con- 
tinuing in that business for several years. 

Thereafter, Mr. Earnest purchased one of the largest and 
finest stock farms in Lafayette County, located about three miles 
northwest of Shullsburg, Wisconsin, which he worked success- 
fully. He also kept up his interest in mining and had shares in 
mines on his own and surrounding lands. 

Mr. Earnest was a staunch Democrat and took great interest 
in politics. He served in the Assembly in 1852, 1854, 1855, 
1857, 1858 and 1877 and in the Senate in 1863, 1864, 1867 and 
1868. 

True to the traditions of his native state, he was genial and 
social, broadminded and generous in his views and his hospitality 
was boundless. Mr. Earnest died June 12, 1900. 

Anson EldrEd born April 14, 1820 at Detroit, Michigan, 
came to Milwaukee in 1842, and engaged in lumber business; 
operated mill at Stiles, Wisconsin, in 1849, employing Indians; 
was instrumental in construction of first railroad in Wisconsin 
and founder of first bank at Prairie du Chien, Wisconsin ; was 
in business at Little Suamico, Oconto and Fort Howard, Wis- 
consin ; died January 14, 1895. 

Leonard J. FarwEle born January 15, 1819, at Watertown, 
New York; moved to Lockport, Illinois, in 1838, engaging in 
hardware business; located in Milwaukee in 1840, and amassed a 



58 General Johnston and Charter Members 

fortune in hardware ; bought largely of Madison, Wisconsin, 
property in 1847 and moved there in 1849, investing largely 
in local enterprises; elected Governor of Wisconsin in 1851 ; lost 
heavily in panic of '57; elected to legislature in 1859; was patent 
examiner at Washington from 1863 to 1870; then removed to 
Chicago and office destroyed by fire ; located in Grant City, Mis- 
souri, opening a banking and real estate office; died April 11, 
1889. 

Lucius G. Fisher born at Derby, Vermont, August 17, 1808; 
taught school until 1833, when he was appointed sheriff for 
Derby and vicinity; went to Chicago in 1837 and not liking its 
prospects, moved on to Milwaukee, Janesville and New Albany 
(now Beloit) Wisconsin, where he located; he engaged in vari- 
ous large and successful enterprises and held many public offices ; 
in 1861-1866 was postmaster of Beloit; then moved to Chicago 
and died there March 6, 1886. 

John HackETT born at Tunbridge, Vermont, January 25, 
1808; settled in Beloit, Wisconsin, then called Turtle and after- 
ward New Albany, in 1836; invested in real estate and became 
wealthy ; was first postmaster of Beloit and one of its early 
mayors ; was a member of Wisconsin Territorial Assembly in 
1840 and constitutional convention of 1846; admitted to bar in 
1 84 1 ; died February 5, 1886. 

William Ward Holden born at Pittsfield, Massachusetts, 
March 16, 1818; located on farm in Walworth County, Wiscon- 
sin, about 1840; went to Janesville, Wisconsin, in 1845, opening 
its first drugstore; continued in business until 1861 ; was a promi- 
nent Odd-Fellow ; a Democrat and Congregationalist ; died Octo- 
ber 7, 1871. 

Solomon Hutson born at Orby, Lincolnshire, England, in 
1819; came to America in 1838, locating at Goshen, Indiana; 
moved to Janesville, Wisconsin, in 1840; first conducting a tailor- 
ing business and afterward engaging in the hotel business at 
Janesville and Prairie du Chien, Wisconsin; died July 30, 1872. 

John M. Keep born January 26, 1813, at Homer, Cortland 
County, New York, graduated from Hamilton College in 1836; 



David Noggle Thomas Lappin Simeon Mills 

Lucius G. Pishee George C. Noethkop Aeabut Ludlow 

Benjamin P. Pixley John Hackett James B. Martin 



General Johnston and Charter Members 61 

studied law and was admitted to bar; removed to Beloit, Wis- 
consin, in 1844; was elected Judge of First Wisconsin Judicial 
Circuit in 1856; was a Republican in politics and in religion a 
Congregationalist ; died March 2, 1861. 

James H. Knowlton born at Canandaigua, New York, Au- 
gust 22, 1813; came to Wisconsin about 1839 an d located at 
Janesville, whence he removed to Mineral Point and afterward 
to Shullsburg, where he was admitted to the bar; in 1856 he 
again located in Janesville where he practiced his profession until 
1861 when he located in Chicago; was the first probate judge of 
Lafayette County, Wisconsin, and served in the Wisconsin As- 
sembly in 1854 and 1856; died in Chicago, January 29, 1879. 

Charles Kuehn born in Saxony; came to America in the 
40's and settled at Milwaukee, Wisconsin ; opened a general store 
and bank at Two Rivers, Wisconsin, in 1847; was State Treas- 
urer of Wisconsin in 1857-8; afterward opened a bank at Mani- 
towoc, Wisconsin, but invested most of his funds in southern 
bonds which the war rendered practically worthless and he 
became bankrupt; he committed suicide in 1867. 

Thomas Lappin born in the County Mead, Ireland, May 12, 
1812; immigrated to America in 1825; located in New York for 
two years and then went to Detroit, Michigan, learning the 
printer's trade; started for Milwaukee in 1838 with stock of 
general merchandise but boat was wrecked and only a part of the 
stock saved; started a general store in Janesville in June 1839; 
died in Janesville, March 29, 1891. 

George W. LEE born in Spring Hill, Fairfax County, Vir- 
ginia, October 25, 1820; was a grand nephew of Gen. Robert 
E. Lee; educated in New York State where his family had 
located about 1838; graduated in medicine and moved to White- 
water, Wisconsin, where he remained but one year ; moved to 
Shullsburg, Wisconsin, in 1844, and practiced his profession; was 
one time Superintendent of Schools of Lafayette County, Wis- 
consin; also tried surgery in Milwaukee, but failing health 
caused his removal to Darlington, Wisconsin, and in 1878, to 
Monroe, Wisconsin ; he returned to Darlington in 1879 and died 
there March 26, 1889. 



62 General Johnston and Charter Members 

Arabut Ludlow born June 21, 18 18, at Burlington, Ver- 
mont; in 1838 went to Lyons, Michigan, where he was a mail 
carrier; in 1839 went to Chicago and engaged to pack goods 
through to Green Bay, Wisconsin, in exchange for furs ; shortly 
thereafter began a similar undertaking for himself and sold 
goods by wagon from Chicago to Madison, Wisconsin, for years ; 
in 1846, settled at Monroe, Wisconsin, and started general mer- 
chandise; later engaged in banking; died April 5, 1896. 

James Baynard Martin born August 10, 1814, at Baltimore, 
Maryland ; educated at St. Mary's, Baltimore ; entered large com- 
mission house there to learn the business ; settled in Milwaukee 
in 1845, engaging in merchandising and real estate and later, in 
milling; was pre-eminently a business man ; he was a Democrat in 
politics and a member of the Protestant Episcopal Church; he 
died January 18, 1878. 

Edward McKey born in Crossmolina County, Ireland, Sep- 
tember 18, 1 82 1 ; with twin brother, Michael, began mercantile 
business in their native town in 1843, an d continued until panic 
of 1846; located in Little Falls, New York, in 1847, remaining 
there two years ; then moved to Wisconsin conducting stores in 
various places with headquarters at Janesvillc ; was a Democrat 
in politics ; attended the Protestant Episcopal church and was a 
Knight Templar; died August 14, 1875. 

Simeon Mills, to whom policy numbered 201 was issued, was 
born in Norfolk, Litchfield County, Connecticut, February 14, 
1810; in 181 1, removed to Ohio; worked on a farm and received 
a common-school education ; engaged in teaching district school 
at twenty, but soon abandoned this and engaged in mercantile 
pursuits for several years; in 1836 visited Wisconsin, and in 1837 
located at Madison, erected a small building of hewed logs, pur- 
chased a small stock of goods and opened the first store at the 
capital city of Wisconsin ; also made a contract in 1837 to carry 
the mail between Madison and Milwaukee until the first of July, 
1842, and accomplished this task without the loss of a single trip 
during the life of the contract — a feat rarely performed at the 
present time, though the distance is spanned by iron and trav- 
ersed by powerful locomotives. In August 1837, Mr. Mills was 



General Johnston and Charter Members 63 

appointed the first justice of the peace in Dane County; in 1839, 
was elected one of its county commissioners, and appointed clerk 
of the court, which latter office he held about nine years ; held 
the office of territorial treasurer when the state government was 
organized, and was elected the first senator from Dane County, 
afterward renominated and declined ; in 1848 was appointed one 
of the regents of the University of Wisconsin, and took an active 
part in the organization and commencement of the institution, 
purchasing its site and superintending the erection of its first 
buildings; in i860 appointed one of the trustees of the State 
Hospital for the Insane and was an active member of that board 
for fifteen years. Simeon Mills died June 1, 1895. 

John Mitchell born Christmas Day 1803, near Attlebor- 
ough, Bucks County, Pennsylvania; began the study of medicine 
in 1819, but in 1821 was obliged to go to clerking in a dry-goods 
store ; in 1824 went into business for himself at Scottsville, New 
York; located in Buffalo, New York, in 1834, but the panic of '37 
terminated his commercial career ; took his degree in medicine in 
1842 and began practice at Buffalo ; removed to Janesville, Wis- 
consin, in 1844; was president of State Medical Society in 1855 
and mayor of Janesville 1864-5 > was a prominent Democrat and 
Mason; died May 23, 1885. 

PETER Myers born near Paris, France, February 8, 1819; 
after coming to the United States learned the butcher's trade in 
Buffalo, New York; removed first to Rockford, Illinois, and in 
1845 settled at Janesville, Wisconsin, where he engaged in busi- 
ness and became identified with large interests ; built the Myers 
Opera House and Hotel, and owned much valuable property in 
Janesville; died March 13, 1888. 

James NiEE born in New York State; spent early years in 
Troy, New York, and New York City; was admitted to the bar 
and while a young man located in Janesville, Wisconsin; left 
Janesville about 1868, and went to St. Louis ; returned to New 
York City in 1888 and practiced his profession there until he 
died, April 28, 1891, at Brooklyn, New York; was a Democrat 
in politics and attended the Protestant Episcopal Church. 

David NoGGEE born in Franklin, Franklin County, Pennsyl- 



64 General Johnston and Charter Members 

vania, October 9, 1809; left home in 1828 and was employed in 
a manufacturing plant for four years; after marrying and in 
1836, moved to Winnebago County, Illinois, and in 1838 was 
admitted to the bar; located in Beloit, Wisconsin, in 1839, and 
was postmaster from 1840 to 1845 ; was a member of the state 
constitutional convention of 1846; moved to Janesville about 
1850; served in the state legislature 1854, 1856 and 1857; elected 
Judge of the First Wisconsin Judicial Circuit in 1858 and held 
office eight years; moved to Iowa in 1866, but soon returned to 
Beloit, where he remained until 1869, when he was appointed 
Chief Justice of the Territory of Idaho, resigning on account of 
ill-health in 1874; returned to Janesville in 1875, and died there 
July 18, 1878. 

George Chester Northrop born in Galway, Saratoga 
County, New York, April 1, 1819; was admitted to the bar and 
began practice at Medina, New York; moved to Wisconsin in 
1849 and located in Racine; in 1854 organized the Racine County 
Bank and became its cashier ; was also interested in the bank of 
B. B. Northrop & Company for many years ; was mayor of 
Racine in 1861 and 1863 and in 1864 was elected to the legisla- 
ture; died July 15, 1874. 

Benjamin Franklin PixlEy, insured under policy num- 
bered 12, was born September 16, 1815; worked on farm and 
educated at district schools ; made two or three trips west 
between 1842 and 1848, at one time driving flock of sheep from 
Oneida County, New York, to Janesville, Wisconsin, passing 
through Chicago, the whole of which he could have bought for 
the value of his flock of sheep ; bought land near Janesville and 
located there in 1848, and engaged in many enterprises, farming, 
milling, merchandising, etc., keeping all the time in touch with 
the wool industry of the country, becoming widely known as an 
expert buyer of this commodity, which led to his being induced, 
in 1863, to locate in Chicago; in 1871 bought a peach farm in 
St. Joseph, Michigan, thinking to retire and devote most of his 
time to outdoor pursuits, but the great fire occurring, he lost 
all his possessions except the Michigan home ; was also a heavy 
loser in the Boston fire and was seriously affected by the panic 
of 1873. He kept at business for a number of years more, show- 




Hercules L. Dousman Solomon Hutson Anson Eldred 

Henry J. Ullmann Peter Myers John M. Keep 

John H. Rountreb Josiah Flint Willard John Mitchell 



General Johnston and Charter Members 67 

ing an amount of grit that is not usual, finally retiring to his 
Michigan home, where he made a success of growing fancy fruit 
for the Chicago market. Mr. Pixley died June 23, 1901. 

John Hawkins Rountree, who held policy numbered 204, 
was born in Warren County, Kentucky, March 24, 1805 ; moved 
to Wisconsin in May 1827, locating at Piatt eville, where he re- 
sided continuously to the date of his death, June 27, 1890. 

Mr. Rountree was the first postmaster of Platteville and was 
re-appointed several times. In 1832, he was made captain of a 
company of volunteers to serve in the Black Hawk war; in 1834 
he was appointed Justice for Iowa County by the Governor of 
Michigan, which office he held until the Territory of Wisconsin 
was organized in 1836; was appointed in 1837, judge of the pro- 
bate court of Grant County; in 1838 was elected a member of 
the Territorial Council for four years, and was re-elected in 
1842; was then elected a member of the constitutional conven- 
tion, rendering valuable service on several important committees ; 
in 1850 he was elected to the State Senate; in 185 1 he was ap- 
pointed a regent of the State University; in 1855, Major General 
of the State Militia; in 1863 he was elected a member of the 
lower branch of the legislature and in 1866 he was the second 
time sent to the State Senate. He was also an incorporator of 
the Grant County Fire Insurance Company organized April 6, 
1867. 

Mr. Rountree was not only one of the original incorporators 
of the company, but he was continuously a Trustee to the date of 
his death. Indeed, for many years he was the only member serv- 
ing of the original board. 

He joined the Masonic bodies in Galena, Illinois, before there 
were any lodges in Wisconsin, and subsequently helped organize 
Melody Lodge at Platteville, Wisconsin, and the Grand Lodge 
of the State. He was a Knight Templar. In religion Mr. Roun- 
tree was a Methodist. 

Joseph Aeonzo Sleeper, nominally the first President of the 
company, was born at Bennett's Bridge, New York, October 15, 
181 8. His early education was acquired in the country schools 
with the exception of several short terms in Alexander Seminary. 
At the age of nineteen he taught school. In the winter of 1839- 



68 General Johnston and Charter Members 

1840, he began to study law and was admitted to the bar in 
Genesee County, New York, in 1844. From that moment, the 
practice of the law was the only business he followed to the day 
of his death. 

The first business partnership entered into by Mr. Sleeper was 
with Hon. Seth Wakeman, but in 1848 this was dissolved and 
Mr. Sleeper came to Milwaukee. He remained there but a short 
time and finally located at Janesville, Wisconsin, where he re- 
mained until 1863, when he went to Chicago to live. He died 
April 17, 1903. 

Morris Clark Smith born December 4, 1820, at Riga, Mon- 
roe County, New York ; graduated at sixteen from Churchville 
Academy; in 1847 settled at Janesville, Wisconsin, and began 
merchandising, gradually extending his business to large propor- 
tions ; was a Democrat in politics and held minor offices ; was 
also a Mason and Odd-Fellow, and attendant upon the Protestant 
Episcopal Church; died February 13, 1886. 

Luke Stoughton born December 10, 1799, at Weathersfield, 
Windsor County, Vermont ; after working at mechanical trade in 
Boston, Massachusetts ; Mobile, Alabama ; and Brooklyn, New 
York, he returned to Vermont in 1836 and married; in 1838, 
moved to a farm seven miles north of Janesville, Wisconsin; 
in 1840, he left the little farm and went to Janesville where he 
engaged in mercantile business and real estate ; located at Stough- 
ton, Wisconsin in 1847; was originally a Democrat but affiliated 
with the new Republican party, but never held office ; he was also 
a Mason; died August 15, 1874. 

Henry J. Ullmann born June 1, 1827, at Buffalo, New 
York; while young, moved with parents to White Pigeon, Mich- 
igan, where he received his education ; located in Racine, Wiscon- 
sin, in 1843 anf l became interested in banking, continuing there 
until 1871 when he removed to Chicago to take an active part in 
the banking house of Wrenn, Ullmann & Company; was a con- 
sistent Republican but never cared for political office ; was a ves- 
tryman of St. Luke's (Protestant Episcopal) Church of Racine, 
Wisconsin, and at one time treasurer of Racine College; lost his 
life in the great Chicago fire of October 9, 1871. 



General Johnston and Charter Members 69 

Josiah Flint Willard born at Churchville, New York, in 
1804; his father dying at forty-two, the care of the family de- 
volved on him at the age of twenty; he had charge of a store at 
Churchville, and was a successful merchant; married in 1836 and 
lived on the old homestead for ten years, when the family moved 
to Oberlin, Ohio, where he hoped to study; ill-health prompted 
him to seek a change and in 1846, he located on a farm near 
Janesville, Wisconsin ; was at one time president of the State 
Agricultural Society and served in the State Assembly in 1846; 
was a member of the Methodist Episcopal Church; in 1858 
removed to Evanston, Illinois, for the education of his daughters, 
one of whom was the eminent Frances Willard ; engaged in the 
commission and banking business in Chicago, but in 1868, he 
and his wife returned to the old home in Churchville, New York, 
— down in the Genesee Valley — where he died January 23, 1869. 



Organization and Removal to Milwaukee 



WHILE the act of incorporation of the company was an 
essential detail, it was equally important that the re- 
quired $200,000 of insurance should be procured before 
any policies could be issued. General Johnston was active in this 
behalf and the magnitude of the work he had before him may be 
appreciated when it is recalled that the year 1857 was marked 
with financial difficulties ; that people were in a 
state of political unrest; that the resources of the 
country were awaiting development and that gen- 
eral conditions in Wisconsin were unfavorable for 



1858 



the selling of life insurance. 

Those interested in the company met at Janesville, February 
23, 1858, and adopted the following resolution: 

"RESOLVED that the incorporators accept the trust reposed and 
all the rights and franchises created by the act of the legislature of the 
State of Wisconsin entitled An Act to incorporate the 'Mutual Life 
Insurance Company of the State of Wisconsin.' " 

Up to this time General Johnston had kept out of the Board 
of Trustees, but John Mitchell resigning, he was elected to fill the 
vacancy. At the same meeting Charles Norton was named in 
place of Thomas Lappin, resigned. 

The Trustees divided themselves into the four classes of nine 
each prescribed by the articles of incorporation as follows : 

First class: George W. Lee, Shullsburg; Josiah F. Willard, 
Janesville; Charles Kuehn, Madison; John P. Dickson, Janes- 
ville; George C. Northrop, Racine; Morris C. Smith, Janesville; 
Matthew H. Carpenter, Beloit ; Solomon Hutson, Janesville ; and 
James H. Knowlton, Janesville. 

Second class : James Bintliff, Monroe ; H. L. Dousman, 
Prairie du Chien ; H. J. Ullmann, Racine ; Charles Norton, Janes- 
ville ; Edward McKey, Janesville ; Leonard J. Farwell, Madison ; 
Lucius G. Fisher, Beloit ; J. Allen Barber, Lancaster ; and William 
W. Holden, Janesville. 




First Officers of the Company 



Joseph A. Sleeper, 

President 

H. W. Collins, 

Secretary 



Alexander Graham, 

Vice President 
Josiah Flint Willard, 

Treasurer 



Organisation and Removal to Milwaukee 73 

Third class : John Hackett, Beloit ; David Noggle, Janesville ; 
John C. Johnston, Janesville ; James R. Doolittle, Racine ; Simeon 
Mills, Madison ; Joseph A. Sleeper, Janesville ; Edward L. Dim- 
ock, Janesville; Anson Eldred, Milwaukee; and H. H. Camp, 
Milwaukee. 

Fourth class : Benjamin F. Pixley, Janesville ; Arabut Lud- 
low, Monroe; James B. Martin, Milwaukee; John M. Keep, 
Beloit ; Peter Myers, Janesville ; John H. Rountree, Platteville ; 
Luke Stoughton, Stoughton; James H. Earnest, Shullsburg; and 
James Niel, Janesville. 

No working organization was perfected for over six months, 
but General Johnston and H. W. Collins, whose services he had 
enlisted, were trying hard to procure signatures representing the 
necessary $200,000 of insurance. 

In the meantime and on April 24, 1858, chapter 169 of the 
Private and Local Laws of 1858 was approved providing for a 
common seal; granting power to make re-insurance of any risks 
taken and to make such by-laws as were necessary. Officers, 
agents or Trustees were made amenable to a fine and imprison- 
ment for abstracting or taking away any money, evidence of debt 
or property belonging to the corporation and disposing of it or 
placing it beyond the reach of the officers without the authority 
of the Board of Trustees or the Finance Committee. Here for the 
first time members of the company were given the right to vote 
by proxy as well as in person. 

A meeting of the Trustees of the company was held on August 
18, 1858, and General Johnston reported progress in obtaining 
applications for insurance. 

At this meeting the following Trustees resigned : Peter Myers, 
Edward McKey, James Bintliff, Arabut Ludlow, William W. 
Holden and John M. Keep, and the following were elected in 
their places : John J. R. Pease, Janesville ; Henry W. Collins, 
Janesville; R. H. Scoville, Whitewater; S. C. Hall, Whitewater; 
M. S. Prichard, Janesville; and W. A. Lawrence, Janesville. 

It will be noted that representatives of Whitewater, Wiscon- 
sin, were on the Board. This was in anticipation of the terms of 
a contract hereinafter mentioned, which was entered into on be- 
half of the company, and subsequently ratified, looking to the 
ultimate location of a branch of the business at Whitewater. 



74 Organization and Removal to Mihvaukee 

The organization of the company was also perfected that day 
by the election of Joseph A. Sleeper, President; Alexander Gra- 
ham, Vice President ; and Henry W. Collins, Secretary. 

A biographical sketch of Mr. Sleeper has been given in con- 
nection with the incorporators of the company. 

Alexander Graham, the first person to be elected Vice Presi- 
dent, was born at Utica, New York, April 6, 1816, of Scotch and 
German ancestry ; received an academic education in New York ; 
in 1 84 1 married Abigail M. Keep, sister of Judge John M. Keep, 
one of the incorporators of the company ; held many positions 
of trust in York State; lived at Whitewater in 1858, and shortly 
thereafter moved to Janesville ; being declared ineligible for war 
duty on account of age, he furnished a substitute at his own ex- 
pense who served through the war ; was several times in the legis- 
lature from Janesville, and in 1872, introduced the so-called Gra- 
ham bill, to "provide against the evils of intoxicating drinks." He 
died May 1, 1895. 

Henry W. Collins, the first Secretary and destined to soon be- 
come President of the company, was born in 1826 at Oswego, 
New York. At one time he was principal of the state normal 
school at Albany, New York, and removed to Janesville in 1853, 
where he was also connected with schools. Later, he built up a 
large business in the manufacture of perfumes and was promi- 
nently identified with local industries and undertakings. He died 
in 1876 after a confining illness of eleven years. 

Although the by-laws had not yet been adopted the following 
standing committees were appointed : 

Finance Committee : John P. Dickson, chairman ; M. C. Smith, 
J. F. Willard and J. H. Knowlton, the President and Secretary to 
be ex officio members. 

Agency Committee : Alexander Graham, chairman ; John P. 
Dickson, L. F. Patten, J. H. Knowlton and Edward L. Dimock. 

Insurance Committee : Josiah F. Willard, chairman ; Morris 
C. Smith and James Niel, the President and Secretary to be ex 
officio members ; and 

Committee on By-Laws : James H. Knowlton, chairman ; J. A. 
Sleeper, David Noggle, Solomon Hutson and M. S. Prichard. 

Possibly the most interesting business at this early meeting, 
in view of the commercial transactions since had by the company 



Organization and Removal to Mikvaukee 75 

— transactions which if totalled for fifty years would reach almost 
incomprehensible figures — was the following: 

"RESOLVED that the President and Secretary be and they are 
hereby authorized to borrow money on the credit of the company to 
an amount not exceeding the sum of $300, the same to be borrowed 
from time to time as the same may be needed in sums of $100 each; 
and for this purpose the President and Secretary are hereby author- 
ized to make the notes of the company." 

There is an interesting sequel to this resolution that will ap- 
pear in due time. 

The next progressive feature in the life of the company as 
revealed by the records was a meeting held on October 18, 1858, 
called for the purpose of approving proposed by-laws and for the 
transaction of such other business as might be necessary. 

The Committee on By-Laws reported, and the by-laws then 
adopted were so well adapted to the needs of the company that 
the essential features of many are retained to this day. 

At this same meeting consideration was also given one of the 
most important incidentals in the life of the company — the pro- 
posed contract presented by General John C. Johnston as General 
Agent. This contract held the destiny of the new organization. 
Had it been adopted as submitted, it would likely have been its 
ruination. General Johnston had seen, or heard of, a similar con- 
tract in the east and his hope was builded high for a like one in 
his family. It was the incentive he had for planning the com- 
pany, securing its charter and interesting people in it. That it 
was not confirmed in toto was a great disappointment to the gen- 
eral, leading to feeling between him and the Trustees and later 
to the removal of the company to Milwaukee, the city of its great 
Opportunity ! 

The proposed contract was as follows : 

"The Agency Committee of the Mutual Life Assurance Company 
of the State of Wisconsin, consisting of Alexander Graham, of White- 
water; L. F. Patten, John P. Dickson, James H. Knowlton and Edward 
L. Dimock of Janesville, duly elected by the Trustees of the said life 
assurance company aforesaid to contract for and with all the necessary 
agents and servants to carry forward the said business of life assur- 
ance, do hereby contract with John C. Johnston and John Henry 
Johnston, his grandson, as follows: 

"John C. Johnston shall act as the General Agent of the company 



y6 Organization and Removal to Milwaukee 

and shall be governed by the by-laws of the company and be directed 
by the President and Secretary of said company when and where to 
establish agencies for said company and to perform all such needful 
services for the said company as he may be required to do; provided 
always that he shall not be required to perfo"rm services which his age 
and ability will not allow of his performing. John Henry Johnston 
shall devote all his time and attendance to the business of said com- 
pany and in case of his neglect or refusal to perform said duties the 
said John C. Johnston shall have the right to substitute some other 
member of his family to perform the duties assigned to or intended to 
be performed by John Henry Johnston. The compensation to be 
allowed to John C. Johnston for his services shall be a salary of two 
thousand dollars per annum payable in monthly installments, his time 
of service to commence on the 1st Nov. 1858 and to continue during 
his natural life. The payments to be made in all cases on the Saturday 
preceding the last day of each month. The Trustees are to pay John 
Henry Johnston for his services such sum as they may deem his 
services to be worth, and the same allowance shall be made to the 
person substituted by J. C. Johnston for his grandson John Henry 
Johnston. 

"It is further agreed, that upon the decease of John C. Johnston, 
John Henry Johnston or his substitute appointed as hereinabove men- 
tioned shall receive five per cent upon the cash received upon the 
premiums upon the policies issued by said company up to the time of 
the death of John C. Johnston so long as such policies shall continue 
to be paid and the said John H. Johnston or his said substitute shall 
continue in the service of the said company, which five per cent shall 
be full payment for the service of the said John H. Johnston or his 
substitute, except insofar as said company shall deem more should be 
paid, and in case the payment of any greater sum should be deemed 
just, the said company shall have the right and power to fix the 
amount of said excess. 

"And Whereas the said John C. Johnston has got up this company 
at his own risk and charge and he has obtained for it a large subscrip- 
tion, now know ye all whom it may concern, that on the 1st day when 
this company shall issue its first policy they shall issue to John C. 
Johnston a paid up policy of $5000, which policy shall be made payable 
in two years from the day when the first policies shall be issued pro- 
vided said John C. Johnston dies within that time but in case said 
John C. Johnston survives the time named then the policy to be paid 
at his decease as other policies are made payable. 

"This contract can only be abrogated for malfeasance, nonfeasance 
or misfeasance as the agents of this company. The travelling expenses 
of John C. Johnston to be paid by the company in addition to the 
$2000 per annum as before stated, not exceeding $3 per day when 
travelling on the business of the said company." 



Organization and Removal to Milwaukee 



77 



This contract was dated October 16, 1858, and was signed on 
behalf of the company by four of the Agency Committee, Messrs. 
Knowlton, Dickson, Patten and Dimock. 

The Trustees, however, disapproved the contract so far as any- 
thing therein contained mentioned or related to John Henry 
Johnston and his substitute, but it was in all other respects, ap- 
proved, ratified and confirmed. 

General Johnston accepted this action in disappointment and 
with regret, but diligently continued his quest for the required 
$200,000 of insurance. It was the only thing that connected him 
with the business he loved so well. 

Nor was the Johnston contract the only important business 
transacted at this meeting. It seems the officers had availed 



-. ' ■:.-■ ':..■:■■■:■ 

, . ... . ,... . ..... .. .. ...... 



THE WISCOHSIH NATIONAL BAN* 



Check for igoj Wisconsin Taxes 

themselves of the opportunity covered by the resolution of August 
18, 1858, to "borrow a little money," and had given a note to the 
banking house of John P. Hoyt & Co. This was to become due 
November 21, 1858 and there was no cash on hand with which 
to meet the obligation. The President and Secretary were author- 
ized to make a new note for $100 to take up the one about to 
become due. 

Contrast this action with that of the officers who on the 29th 
day of February 1908, sent the treasurer of the State of Wis- 
consin, a check for $365,303.61 as taxes for the privilege of do- 
ing business in that one state for the year 1908 — an act that cover- 
ed the payment of tax-money to the state that gave the company 



78 



Organization and Removal to Milwaukee 



life to the amount of $1,000 for every day in the year. Think of 
a development from the extension of a $100 note, to the payment 
of $1,000 per day in taxes to one single state! 

Necessary forms of application and physician's certificates 
were adopted and provision was made for the preparation of suit- 
able premium rates and policy contracts to be issued. 

The records of the company do not show what rates were 
then adopted, but they appear in the first piece of "literature" ever 
issued by the company — a little pamphlet which because of its 
age and unique character is here given in full. The cover page 
is as follows : 



FIRE 



INSURANCE 



LIFE ASSURANCE 



CONSIDERED. 



Janesville, Wi 



1858. 



DEMOCRATIC STANDARD 
PRINT. 



Organisation and Removal to Milwaukee 79 

The following is the subject matter of the pamphlet: 
Fire Insurance and Life Assurance Considered 



"We call upon all men dispassionately to consider a subject, the 
vital importance of which is paramount to almost all other earthly- 
considerations, and from which the beneficial effects are appreciated 
and acknowledged by others, when he, who has been the happy cause 
of their bestowal, shall have sunk into the silent tomb. 

"In contrasting the almost universal cases of Fire Insurance with 
the comparatively few policies of Life Assurance, a fact is deduced 
which proves but too truly and too plainly the love of self and self's 
comforts over near and dear ties. 

"On the occurrence of a fire, when a man is insured, he finds him- 
self in a short space of time, again in possession of his stock in trade, 
his furniture and every article which contributes to his happiness and 
comfort; he is perfectly delighted when he reflects upon the prudence 
and the forethought which had enabled him thus to retrieve his loss, 
and thanks God while he contrasts what is, with what might have 
been. 

"Personally, he has reaped the benefit. Thus much for insurance 
against fire. 

"How then for Life Assurance? 

"Take the same man and place before him the advantage of — Nay, 
the absolute duty of effecting Life Assurance, tell him that at death; 
whenever it may occur, in an hour, a day or a month, a year or any 
number of years; his widow and children would receive a certain stip- 
ulated sum. 

"Although it amounts to a hundred times the amount expended in 
premiums; simplify the question; cite cases upon cases, when from 
the neglect of this precaution, whole families have been reduced at 
one blow, from affluence to poverty — he still argues and objects. 

"He says he is young and strong, and healthy, and may live for 
many years; in vain you will point him to the bills of mortality. Show 
him that out of every 5000 persons in the prime of life, 600 will die in 
ten years; and before another ten years have passed away 700 more 
will have ceased to live; and for the third term of ten years, which 
makes the 30th year 850 more will have gone to their resting place. 
Add these three sums together, and tell him that in 30 years, 2150 out 
of every 5000 will be dead, and our fears are, that he will still object 
and say, 'what possible good can result to me for having insured my 
life?' 

"Now friends it is a fixed fact that all men must die; the young, the 
healthy, the vigorous are suddenly cut off; no time having been allowed 
them to accumulate a hoard; and with these, goes from their home, 
comfort and independence. 



80 Organization and Removal to Milwaukee 

"But had these assured their lives for even a moderate sum, the 
widows and the orphan's tears of love and gratitude would again and 
again gush forth, long after the heart that loved them had ceased to 
beat. 

"Permit us now, in conclusion, to urge upon every father whose 
income depends solely on his individual exertion, to lay aside a small 
portion of his earnings in securing to his family a life Policy, against 
that day when the hands that have procured the family meal, shall 
have ceased their toil forever. 

"At 20 years of age a man may assure $1000 for life, at a premium 
of $17 30 per annum, at 30 the premium will be $23 02 on $1000, at 40 
the premium will be $31 73 on $1000. 

"The average of time which all life policies have run up to this 
time, has been 30 years. Every Policy made in the Mutual Life Assur- 
ance Company of the State of Wisconsin, which, if it be kept up for 
thirty years, will at maturity, be worth at least three times the sum 
assured; thus the $1000 would be worth $3000. 

"Let every man consider his circumstances, and make provision for 
his family by a life Policy, he will then have the proud satisfaction of 
knowing that he has performed an important duty to himself, his 
family and the community, and his mind will be at ease during life, 
and when he has been consigned to his narrow house, his grave will 
be hallowed with the grateful tears of his surviving relatives. 

WHAT IS LIFE ASSURANCE? 

"Have our citizens any interest in this matter? 

"The duration of life among large bodies of men is subject to laws 
as exact as those which regulate the occurrence of the seasons or other 
natural events, and the number of deaths to be expected yearly at each 
particular age, may be anticipated with such precision as to be entirely 
relied on. 

"It is the observation of this law of nature that has given rise to 
the establishment of Life Assurance Companies, whose calculations 
are founded upon it; and these institutions, with perfect confidence in 
the uniformity of the results which follow, grant their obligations for 
sums to be paid when death occurs, the persons assured, paying them 
a small annual sum during life. 

"Out of 1000 men at 35 years of age it is calculated that about 10 
die annually in the United Kingdom of Great Britain; in this country, 
we feel confident that longevity is better; we find by the report of the 
Mutual Life Assurance Company of New York for the year 1857, that 
their loss predicted during the last 15 years, was 918, whereas, their 
actual loss was only 747, showing a difference of 171, leaving a net 
profit to the company of $556,000; 31 per cent of which was derived 
from the company's last two years business. 

"Suppose that 1000 individuals subscribe one dollar each, this will 



Organization and Removal to Milwaukee 81 

give the sum of $1000; and then suppose that this one dollar pays 
assurance upon each life for one hundred dollars, and suppose that 
during the year, 10 of these die, the company will be able to pay each 
ones heirs the $100 assured; and thus, by this small payment all are 
protected. 

"The above is a simple case showing the application of the prin- 
ciple for one year, but in the practice of Life Assurance, persons gen- 
erally make an agreement with a company to assure them at a fixed 
rate for the whole of life; thus the annual payment required for a fixed 
sum of $1000 to be payed them at death and not varying with increased 
age is: 

If 25 years old at entry, $19 89 

If 30 " " " " 23 02 

If 35 " " " '* 26 87 

If 40 " " " " 31 73 

If 45 " " " " 38 04 

If 50 " " " " 46 42 

"The Mutual Life Assurance Company of the State of Wisconsin 
assures persons at every age, from 14 years of age to 56, the premium 
at 14 being $14 71 on $1000; while at 56 it is $60 25 on $1,000, showing 
the great advantage which young persons have over those more 
advanced, by entering into contracts of this sort early. 

"The sum stipulated to be paid at death to the heirs of each one 
assured, being secured to be paid without reference to other indi- 
viduals dealing with the company; it being the business of the com- 
pany to obtain a sufficient number of members to secure what is called 
an average, that is, such a number as will give complete regularity in 
the results. 

"From the moment the first payment is made by an individual to a 
Life Assurance Company, his peace of mind, as regards the welfare of 
dependents is secured, and how selfish must that man be, who will not 
set apart so comparatively trifling a sum, to secure comfort and hap- 
piness to those he leaves behind him. Any man having others depend- 
ent upon him, who neglects to seek such protection, neglects one of 
the first duties he is bound to perform." 

The pamphlet also contained the Life Table shown on the fol- 
lowing page. 



82 



Organization and Removal to Milwaukee 



Table i — Life Table 

The Rates of Assurance of One Thousand Dollars on a Single Life, 
for the Whole Continuance Thereof 





Quarterly 


Semi-ann. 


Annual 


Annual 


Annual 






Age 


Payments 


Payments 


Payments 


Payments 


Payments 


Payment 


Age 




for Life 


for Life 


for Life 


for 10 yrs. 


for 5 yrs. 




14 


3 77 


7 48 


14 71 


33 49 


57 68 


254 59 


14 


15 


3 88 


7 68 


15 11 


34 18 


58 86 


259 69 


15 


16 


3 98 


7 89 


15 52 


34 89 


60 05 


264 88 


16 


17 


4 09 


8 11 


15 94 


35 62 


61 27 


270 16 


17 


18 


4 20 


8 33 


16 38 


36 35 


62 51 


275 53 


18 


19 


4 32 


8 56 


16 83 


37 11 


63 78 


280 99 


19 


20 


4 44 


8 80 


17 30 


37 87 


65 07 


286 56 


20 


21 


4 56 


9 05 


17 78 


38 66 


66 38 


292 23 


21 


22 


4 69 


9 30 


18 28 


39 45 


67 72 


298 00 


22 


23 


4 82 


9 56 


18 80 


40 27 


69 08 


303 88 


23 


24 


4 96 


9 84 


19 34 


41 10 


70 48 


309 87 


24 


25 


5 10 


10 12 


19 89 


41 95 


71 89 


315 97 


25 


26 


5 25 


10 41 


20 47 


42 82 


73 35 


322 20 


26 


27 


5 41 


10 72 


21 07 


43 71 


74 83 


328 55 


27 


28 


5 57 


11 04 


21 70 


44 62 


76 34 


335 03 


28 


29 


5 73 


11 37 


22 35 


45 55 


77 88 


341 64 


29 


30 


5 91 


11 71 


23 02 


46 51 


79 46 


348 38 


30 


31 


6 09 


12 07 


23 73 


47 48 


81 07 


355 26 


31 


32 


6 28 


12 45 


24 47 


48 48 


82 72 


362 29 


32 


33 


6 47 


12 84 


25 23 


49 50 


84 41 


369 46 


33 


34 


6 68 


13 24 


26 03 


50 55 


86 13 


376 78 


34 


35 


6 89 


13 67 


26 87 


51 62 


87 89 


384 26 


35 


36 


7 12 


14 12 


27 75 


52 72 


89 70 


391 90 


36 


37 


7 36 


14 59 


28 67 


53 86 


91 55 


399 71 


37 


38 


7 61 


15 08 


29 64 


55 02 


93 44 


407 70 


38 


39 


7 87 


15 60 


30 66 


56 21 


95 38 


415 87 


39 


40 


8 14 


16 14 


31 73 


57 45 


97 37 


424 23 


40 


41 


8 43 


16 72 


32 86 


58 72 


99 41 


432 79 


41 


42 


8 74 


17 32 


34 05 


60 03 


101 51 


441 54 


42 


43 


9 06 


17 96 


35 30 


61 38 


103 66 


450 49 


43 


44 


9 40 


18 64 


36 63 


62 78 


105 87 


459 66 


44 


45 


9 76 


19 35 


38 04 


64 24 


108 15 


469 03 


45 


46 


10 14 


20 11 


39 53 


65 74 


110 49 


478 62 


46 


47 


10 55 


20 92 


41 11 


67 31 


112 91 


488 41 


47 


48 


10 98 


21 77 


42 78 


68 92 


115 39 


498 37 


48 


49 


11 43 


22 66 


44 55 


70 59 


117 92 


508 49 


49 


50 


11 91 


23 61 


46 42 


72 31 


120 51 


518 75 


50 


51 


12 42 


24 62 


48 39 


74 08 


123 15 


529 15 


51 


52 


12 95 


25 69 


50 49 


75 91 


125 85 


539 68 


52 


53 


13 52 


26 82 


52 71 


77 81 


128 61 


550 36 


S3 


54 


14 13 


28 02 


55 07 


79 78 


131 44 


561 17 


54 


55 


14 77 


29 29 


57 58 


81 84 


134 34 


572 12 


55 


56 


15 46 


30 65 


60 25 


83 98 


137 32 


583 19 


56 



Organisation and Removal to Mihvaukee 



83 



The back cover of the little pamphlet contains the wonder- 
fully pathetic picture here reproduced — 




Back Cover of First Piece of Literature 



The next meeting of the Trustees was held on November 8, 
1858, and the resignation of Joseph A. Sleeper. President, having 
been tendered, Henry W. Collins was elected in his place. This 
election leaving a vacancy in the office of Secretary, E. L. Dimock, 
of Janesville, was chosen. W. A. Lawrence, one of the Trustees, 
tendered his resignation. 

By this time General Johnston had enlisted the valuable as- 
sistance of Milton Rowley of Whitewater, H. G. Wilson of Mil- 
waukee and E. L. Dimock of Janesville. Working together they 
finally procured the desired $200,000 of insurance and on No- 
vember 25, 1858, the necessary policies of life insurance were 
issued thereon. 

These were as follows: 



84 



Organization, and Removal to Milwaukee 



No. of 
Policy. 



Name 



Date of 
Issue 



Amount 



Solicitor. 



1. Johnston, John C 

2. Johnston, John Henry. . . . 

3. Thomas, John L. V 

4. Barrows, Lyman J 

5. Hall, Edward 

6. Wilson, Hiram G 

7. Plimpton, Chas. O 

8. Wright, Conrad E 

9. Dimock, Edward L 

10. Spaulding, Stephen C. . . . 

11. Johnston, Wm. H 

12. Pixley, Benj. F 

13. Graham, Alex 

14. Scoville, Augustus H 

15. Not issued 

16. Miller, Ezra 

17. Patten, La Fayette F 

18. Eyclesheimer, Piatt 

19. Hollister, Rufus M 

20. Norris, Albion K 

21. Pratt, Alex M 

22. Hall, Sheldon C 

23. Rami, Hannibal L 

24. Hempel, Henry T. J 

25. De Wolf, Wm 

26. Kellogg, Edson 

27. Wenzel, Gottlieb Heinrich. 

28. McKnight, Lewis 

29. Darrow, Merritt S 

30. Hanson, Moses P 

31. Norton, Leverett J 

32. Brown, Daniel T 

33. Cross, Nelson 

34. Collins, James H 

35. . Cogswell, Thomas 

36. Elmore, M. Gage 

37. Vaux, Thomas 

38. Newcomb, Saxton B 

39. Booth, Sherman M 

40. Harvey, Louis P 

41. Drysdale, Wm 

42. Collins, Henry W 



Nov. 25, 
1858 



$5,000 
"S.-000 
2,000 
5,000 
.1,000 
2,000 
2,500 
2,000 
5,000 
5,000 
5,000 
2,500 
5,000 
5,000 

5,000 
5,000 
2,000 
2,000 
5,000 
5,000 
5,000 
2,500 
2,500 
5,000 
3,000 
1,500 
3,000 
2,000 
3,000 
1,000 
2,000 
2,000 
1,000 
2,000 
3,000 
1,000 
5,000 
5,000 
2,500 
2,000 
5,000 



J. C. Johnston 



Milton Rowley 



J. C. Johnston 



Milton Rowley 



H. G. Wilson 
E. L. Dimock 
J. C. Johnston 
H. G. Wilson 



J. C. Johnston 
Milton Rowley 



Organization and Removal to Milwaukee 



§5 



No. of 
Policy 



Name 



Date of 
Issue 


Amount 


Solicitor 






Nov. 25, 


1,000 


H. G. Wilson 


1858 


1,500 


" 




' 


2,500 


Milton Rowley 




1 


5,000 


J. C. Johnston 




' 


2,000 


Milton Rowley 






2,000 


J. C. Johnston 




« 


3,000 


» 




' 


1,000 


H. G. Wilson 




' 


5,000 


E. L. Dimock 




' 


5,000 


J. C. Johnston 




' 


5,000 


" 




' 


1,000 


" 




' 


5,000 


" 




' 


1,000 


H. G. Wilson 




' 


2,000 


" 




' 


3,000 


" 




' 


2,000 


J. C. Johnston 




' 


2,400 


Milton Rowley 




5,000 


H. G. Wilson 


Nov. 29, 


2,500 


J. C. Johnston 


Nov. 30 


5,000 

5,000 


E. L. Dimock 


Dec. 1. 


3,000 


J. C. Johnston 


' 




3,000 


" 



43. Hamlin, Everlin B. . . 

44. Gorham, Wm 

45. Rowley, Milton 

46. Cheney Jr., Rufus. . . 

47. Shiells, Robert 

48. Burgess, Jas. M 

49. Not issued 

50. Willard, Oliver A... 

51. Hislop, Thomas 

52. Knowlton, James H. 

53. White, Delos M 

54. Ayres, Mark 

55. Jones, Jno. W 

56. Ogilvie, Jas. H 

57. Griswold, Jos. W. . . . 

58. De Witt, Jacob T. B 

59. Bingham, James M . . . 

60. Turner, Peter H 

61. Card, Wm. Warren.. 

62. Staughton, Neville.. 

63. Miltimore, Ira 

64-65-66. Hoyt, John P.. 

67. Norton, Isaac M 

68. Lane, F. Mortimer... 

69. Stevens, Chas. E 



The first policy ever issued by the company, it will be observ- 
ed, went to General John C. Johnston, who had labored so dili- 
gently to get it organized. For years, this first policy was 
"mourned as lost" at the home office and the copy of the substitute 
policy hereinafter referred to, reproduced on pages 94 and 95, 
has been given prominence. In searching for other papers relating 
to the company's history, however, a fire proof drawer in the 
steel vault in the Secretary's office, which drawer had not been 
opened for years, was unlocked, and there, covered with dust so 
thick as to make it almost indistinguishable, was found the origi- 
nal first policy issued to General Johnston — the first policy ever 
issued by the company. The reproduction here given is from 
a photograph of the original. 





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(Signatures and Endorsement on Opposite Page) 



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88 



Organization and Removal to Milwaukee 



Of all those insured by the original lot of policies issued on 
November 25, 1858, but two survive — Leverett J. Norton, then 
and now of Chicago, Illinois, and Joseph W. Griswold, formerly 
of Milwaukee, but now of Chicago. Mr. Norton's policy is num- 
bered 31 and Mr. Griswold's 57, although it must be understood 
that most of the policies representing the foundational $200,000 of 
insurance were issued the same day. Policy numbered 1 was 
courteously issued to General Johnston. 

The history of this policy numbered 31 issued to Leverett J. 

Norton is exceedingly 
interesting. It is for 
$1,000, Life plan, is- 
sued November 25, 
1858, but the renewal 
date was changed to 
May 25, to accommo- 
date the insured. Mr. 
Norton was twenty- 
nine years old when 
the policy was issued 
and his annual pre- 
mium is $22.35. The 
dividends, except the 
first, have been applied 
to purchase p a i d-u p 
participating additions 
to the original amount 
of insurance and these 
additions amount at 
the time of writing, to 
$1,494.55, making the 
insurance carried nearly $2,500. Assuming that the dividend of 
1908 will be applied in the same way, the amount carried under the 
policy will be $2,528.55, or a little more than two and a half times 
the original sum insured. If the first dividend had been used 
to purchase additional insurance the result would be even more 
favorable. For many years, in fact since 1889, the annual divi- 
dend, with only three exceptions, has been larger than the annual 
premium, and in each of the exceptional cases the difference is 




Leverett J. Norton 
Chicago, 111. Policy No. 31. 



Organization and Removal to Milwaukee 



89 



small, so that if Mr. Norton preferred to use the dividends to pay 
premiums instead of to increase the insurance, the policy would be 
continued in force without cost to him. 

The policy numbered 57 issued to Joseph W. Griswold at age 
twenty-eight, was a $1,000 Ordinary Life, but was changed in 
November 1864 to a full-paid. 

And so on November 25, 1858, the company was organized 
in the face of difficulties that would have deterred men less active 
and persistent than those back of this middle-western invader and 
contender. These beginning-days were reconstruction days, too. 

Some had merely loaned 
their names to the enterprise 
perfunctorily, or perhaps 
diplomatically, without any 
personal interest in the con- 
cern, and they were of little 
value, if not a handicap to a 
working organization. So 
the meetings thereafter held 
in 1858, were marked with 
resignations and elections. 

At the Trustees' meeting 
of December 11, 1858, Alex- 
ander Graham resigned as 
Vice President and Augustus 
H. Scoville, of Whitewater, 
was elected to fill the va- 
cancy. 

Augustus H. Scoville was 
born in 1809 at Montreal, 
Canada. His first business 
venture was in grain and 
commission at Buffalo, New York ; later he engaged in banking at 
Gallipolis, Ohio, and Kokomo, Indiana ; moved to Whitewater in 
August 1846, and became identified with the banking and other 
early-day enterprises of that place ; removed to Oak Park, Illinois ; 
later to California, where he died in the year 1877. He acted as 
Vice President of the company from December 11, 1858, to March 
7, 1859, when his term as Trustee expired. 




Joseph W. Griswold 
Chicago, 111. Policy No. 57. 



90 Organization and Removal to Milwaukee 

Luke Stoughton, Matt. H. Carpenter, Charles Kuehn, George 
W. Lee and Leonard J. Farwell also resigned as Trustees at the 
meeting of December n, 1858. Alexander Graham was nominat- 
ed for Trustee at Whitewater and the following at Milwaukee : 
S. S. Daggett; Lester Sexton; Eliphalet Cramer; C. D. Nash; M. 
S. Scott; John Bradford; E. B. Wolcott and Henry L. Palmer. 
In furtherance of the reconstruction idea, a resolution was adopt- 
ed to the effect that the corporators at Milwaukee who refused 
to act with the Board and to take policies be requested to resign. 

A contract heretofore referred to and which had been made 
with the Whitewater Trustees of the company November 25, 1858, 
was brough up for consideration. This so-called Whitewater con- 
tract, concerning which there has been a difference of recollec- 
tion in company official circles, was supposed to have been lost 
with the first policy and other early important documents, but 
was found at the same time and place with the others. In effect, 
it split the company in two parts, one with headquarters at Janes- 
ville and the other at the "Village of Whitewater." It provided 
that there should always be three Trustees of the company 
from Whitewater, one of whom should be Vice President; the 
Whitewater Trustees were empowered to open books, employ 
persons to keep the same and to appoint agents in the 
counties of Walworth and Jefferson ; to solicit insurance, approv- 
ing applications for final consideration at Janesville ; were author- 
ized to keep the moneys received by them in a safe place and were 
empowered to loan and invest in the name of the company a per- 
centage thereof under certain regulations ; whenever any pay- 
ments for losses and the like were made from Janesville, which 
was made the disbursing headquarters, the amount was required 
to be apportioned to and paid out of the funds of the company at 
Whitewater in a pro rata proportion; the Whitewater Vice Presi- 
dent was authorized to sign loan checks and drafts ; monthly re- 
ports from that branch were required, and the only saving pro- 
vision of the contract, as it is now viewed, was the one expressly 
providing that the Whitewater Vice President and Trustees should 
be personally responsible for the Whitewater assets. 

Such a contract would have been disastrous if kept in force 
and still, when it was considered by the men then interested, it 
was ratified by but one dissenting voice, that of James Niel. 



Organisation and Removal to Milwaukee 91 

December 18, 1858, S. S. Daggett was elected Trustee instead 
of Luke Stoughton; M. S. Scott, of Matt. H. Carpenter; E. B. 
Wolcott, of G. W. Lee and Henry L. Palmer, of Charles Kuehn. 

This date may, therefore, be given special mention since it 
introduced three men who attained to official prominence — Henry 
L. Palmer, S. S. Daggett and E. B. Wolcott. Their connection 
with the company will appear in the progress of this history. 

At a meeting of the Finance Committee held December 22, 
1858, the gratifying information was disclosed that business was 
looking up, for within the month policies had been written as 
follows : At Milwaukee, twenty-six ; Whitewater, fourteen and 
Janesville, seven. 

The reconstruction still proceeded. At the last meeting of 
the Trustees in 1858, held on the final day of that year, Daniel 
Newhall, of Milwaukee, was elected Trustee in place of Leonard 
J. Farwell, resigned ; William J. Whaling, of Milwaukee, in place 
of James R. Doolittle; Ezra Miller, of Janesville, in place of 
David Noggle, and S. C. Spaulding, of Janesville, in place of W. 
A. Lawrence. 

The Trustees seem to have become impressed with the prob- 
able ultimate necessity for a Treasurer of the institution and the 
office was accordingly created, Josiah Flint Willard being elected. 
Just how they reconciled this proceeding with the one taken by 
the Finance Committee the same day authorizing the President and 
Secretary to issue a 60 day note of $150 to apply on General 
Johnston's agency account, is not shown. 

In procuring the preliminary insurance required to begin busi- 
ness, the services of Hiram G. Wilson had been enlisted in Mil- 
waukee, and he was largely responsible for the subsequent removal 
of the head office to Milwaukee. 

Mr. Wilson was an ideal insurance solicitor. He 
had character, health, education, youth and enthu- 
siasm. He was also a good business man. He saw 
the possibilities of the institution. Better still, he made others 
see them and believe in them. 

Indicative of the trend of affairs, the Trustees met February 
7, 1859 and nominated two men from Milwaukee and four from 
Janesville as Trustees, but on February 23, 1859, chapter 35, Pri- 
vate and Local Laws of 1859, was approved striking out the 



1859 



92 Organization and Removal to Milwaukee 

words "in the City of Janesville" where they occurred in the 
act of incorporation, and on March 4, 1859, Lester Sexton, 
George B. Miner and C. D. Nash, all of Milwaukee, were elected 
Trustees to succeed H. H. Camp, of Milwaukee; George C. 
Northrop, of Racine and Simeon Mills, of Madison. 

Thus was the road prepared for the eventful meeting of Mon- 
day, March 7, 1859. The place for holding the annual meeting 
of the company and of transacting its business had been regulated 
by law so as not necessarily to be in Janesville and the presence 
of the Milwaukee Trustees in the city was premonitory. 

The meeting was held in the evening and after the resigna- 
tion of Charles Norton and John J. R. Pease as Trustees had been 
accepted, the most fateful resolution ever presented to the insti- 
tution was offered by Secretary Dimock as follows : 

"RESOLVED — That from and after the close of this meeting the 
office of this company he located in the City of Milwaukee and the 
operations and business of this corporation shall be carried on in 
said City of Milwaukee so far as the same can be done at a principal 
office, and that the President and Secretary be authorized to remove 
the books and papers and property of the company to Milwaukee, 
and to do whatever may be necessary to carry into effect this reso- 
lution." 

Surely records are cold-hearted — yea, lifeless — sort of things. 
Here was a resolution that meant existence to the institution just 
beginning, as it also meant the sacrifice of the fondest hope of a 
man whose long life had culminated in the establishment of the 
infant company, and yet the indifferent records merely give the 
names of those who voted in favor of the adoption of the resolu- 
tion, adding : "Those voting in the negative were John C. John- 
ston, Esq., one." Pathetic, when one remembers that the old gen- 
eral's ambition was bound up in the company, but prophetic of 
its future greatness. 

Provision was also made at this meeting for the next election 
of Trustees to be held at Milwaukee ; a committee to revise the by- 
laws was appointed and a reorganization was effected by the elec- 
tion of S. S. Daggett as President, in place of H. W. Collins, 
resigned, and the choice of Dr. E. B. Wolcott as Vice President. 
And so, the Mutual Life Insurance Company of the State of 



Organization and Removal to Milwaukee 93 

Wisconsin, went out from its place of birth to the metropolis of 
the state where its home office has since remained. 

Samuel Slater Daggett, who had become insured in the com- 
pany on December 10, 1858, by policy numbered 116, was born 
in Attleboro, Bristol County, Massachusetts, April 19, 1812, and 
located in Milwaukee about 1844, where he successfully engaged 
in commercial business until 1849, when he was elected president 
of the Milwaukee Mutual Fire Insurance Company. In 1858 he 
gave up the presidency of that company and became interested 
in the Mutual Life of Wisconsin. He was possessed of abundant 
common sense ; a good general business experience ; was ruggedly 
honest and an ideal man for the presidency of the company. 

Those who remember Mr. Daggett describe him as about six 
feet two inches high, of large frame, carrying no superfluous flesh, 
with a finely shaped head covered with gray-white hair — a man 
whose physical lines made him conspicuous. Mr. Daggett was of 
limited book-knowledge, but held a degree in practical education. 

His incumbency extended from March 7, 1859, to May 23, 
1868, when he died. He was buried with Masonic rites, being a 
prominent member of that order. 

Erastus B. Wolcott was born at Benton, Yates County, New 
York, October 18, 1804; took his degree in medicine in 1833; 
appointed surgeon in the United States army in 1836; resigned 
in 1839, and located in Milwaukee; was appointed surgeon of 
the state militia of Wisconsin in 1842; commissioned colonel of 
militia in 1846, and later in the same year major-general of the 
first division; during war of rebellion was surgeon-general of 
Wisconsin and in 1866 was appointed manager of the national 
home for soldiers at Milwaukee. Dr. Wolcott was one of the big 
men of Wisconsin and his history is written closely into that of 
the state. Aside from his connection with the company as Vice 
President, Dr. Wolcott was for a long time its Consulting Physi- 
cian and a Trustee to the date of his death, January 5, 1880. 




af ~~ v M^Ot, 



"1 






vr 



t£& /f'J'&s 



Copy of Substitute for Policy No. i 

(Receipts for Settlement and Printed Copy of Policy on Opposite Page) 




ni\&& j<^a£z. y^^- a^<..i '•,:-••--,.., . •;. „:/w, 

Receipts Shozving Payments on Johnston Policy 

(Copy of Policy) 

THE MUTUAL LIFE INSURANCE COMPANY OF THE 

STATE OF WISCONSIN 

This policy of assurance witnesseth that the Mutual Life Insur- 
ance Company of the State of Wisconsin in consideration of the 
representation made to them in the application of John C. Johnston 
for policy No. 1, issued to him on the 25th day of November, A. D. 
1858, and which application is made the basis for this policy and of 
the canceling of the said policy so issued to the said John C. John- 
ston on the 25th day of November 1858, and in further consideration 
of the contract made by said John C. Johnston to the said company, 
bearing even date herewith, by which a contract made between the 
said John C. Johnston and the said company, dated the 16th day of 
October, A. D. 1858, is abrogated; 

Do assure the life of the said John C. Johnston of Madison in 
the County of Dane, State of Wisconsin for the sole use of Ruth 
Johnston, wife of the said John C. Johnston, in the amount of 
$5,000 for the term of his natural life. And the company do hereby 
promise and agree to and with the said assured well and truly to 
pay or cause to be paid the sum assured to the said assured, her 
heirs, executors, administrators or assigns for her sole use in con- 
formity with the charter of the Mutual Life Insurance Company of 
the State of Wisconsin in such case made and provided in ninety 



g6 Organization and Removal to Milwaukee 

days after due notice and proof of interest (if assigned or held as 
security) and of the death of the said John C. Johnston payment to 
be made in ninety days after due notice and proof of the death of the 
said John C. Johnston as aforesaid. Provided always and it is 
hereby declared to be the true intent and meaning of this policy 
and the same is accepted by the assured upon these express condi- 
tions that in case the said John C. Johnston shall without the con- 
sent of this company previously obtained and endorsed upon this 
policy pass beyond the settled limits of the United States (except- 
ing into the settled limits of the British Provinces of the two Can- 
adas, Nova Scotia or New Brunswick) or shall without such previous 
consent thus endorsed, visit those parts of the United States which 
lie west of the 100th degree of west longitude or between the first 
of July and the first of November those parts which lie south of the 
southern boundaries of the states of Virginia and Kentucky or shall 
be or reside within ten miles of the Mississippi or Missouri Rivers 
between the parallels of 36°30" and 40 degrees of north latitude 
(except while journeying) or shall enter upon a voyage on the 
high seas or as a mariner, engineer, fireman, conductor or laborer in 
any capacity upon service on any sea, sound, inlet, river, lake or 
railroad, or into any military or naval service whatsoever (the militia 
not in actual service excepted) or in case he shall die by his own 
hand or the hands of justice, or in consequence of a duel or of the 
violation of any laws of these states or of the United States or of 
the said Provinces or of any other country which he may be per- 
mitted under this policy to visit or reside in, then this policy shall 
be null, void and of no effect. And it is also understood and agreed 
by the within assured to be the true intent and meaning hereof that 
if the declaration made by the said John C. Johnston in the applica- 
tion heretofore mentioned or any part thereof and upon the faith 
of which this policy is made shall be found in any respect untrue 
then and in such case this policy shall be null and void — and pro- 
vided further that in case of the death of the said John C. Johnston 
within two years from the date of this policy the said sum of $5,000 
shall not be due and payable until the expiration of two years from 
the date hereof. In witness whereof the said The Mutual Life 
Insurance Company of the State of Wisconsin have by their presi- 
dent and secretary signed and delivered this contract this 12th day 
of March, A. D. 1859. 

S. S. DAGGETT, 

Prest. 
E. L. DIMOCK, 
Secty. 



Laying a Strong Foundation 



THE official procession that left Janesville the next morn- 
ing might have been impressive to residents of the city 
had they realized its import, but it could not have been 
half so inspiriting as it was to the new President and Vice Presi- 
dent, to say nothing of the Trustees who had accomplished the 
desired result. 

They carried with them not merely the hopes of wondrous 
accomplishments for the new concern but all of its goods, chat- 
tels, books, papers and things, neatly done up in a little black, 
leather-covered trunk about 30x20x14 inches in size. 

That little black trunk was carefully guarded for quite a long 
time but in the many after-removals and constant demand for 
space, it gradually lost the homage due it and was finally finished 
by a vandal hand. Its historical value was swallowed up in com- 
mercial progress. 

The first meeting of the Trustees in Milwaukee was held on 
March 11, 1859 at ^ r - Wilson's office on the southwest corner 
of Wisconsin street and Broadway where now stands the Rail- 
way Exchange building. Henry A. Nichols was elected a Trus- 
tee in place of John J. R. Pease and James Bonnell in place of 
Charles Norton. 

A storm that had been brewing for days broke at this meet- 
ing. General Johnston had known that he was no longer in favor 
with the Trustees and their action in moving to Milwaukee was 
the last straw. His disfavor was largely due to the agency con- 
tract he held. It was a menace to the welfare of the institution. 
It must be rescinded, they said. 

General Johnston by this time was not on speaking terms with 
most of his fellow Trustees, so negotiations were difficult. He 
did talk to Henry L. Palmer, however, who realized the danger of 
such an oustanding instrument and the necessity for some com- 
promise. After talking the matter over with Mr. Johnston, who 
was made to realize the futility of proceeding under the old con- 

97 



98 Laying a Strong Foundation 

tract, Mr. Palmer secured enough concessions to warrant formal 
action by the Board and even had Mr. Johnston, himself, offer a 
resolution that whereas the old contract was a source of dissatis- 
faction, a committee be appointed to arrange its abrogation and 
recommend an equitable recompense in return. 

The committee, which consisted of S. S. Daggett, Henry L. 
Palmer and C. D. Nash, arranged to pay General Johnston seven 
hundred dollars in cash, in full of all services and disbursements, 
and in full of all claim against the company to date, and also to 
issue a full paid policy for $5,000 on his life, to Ruth Johnston, 
his wife, in consideration of which General Johnston entered into 
a contract dated March 12, 1859, to relinquish the contract of 
October 16, 1858 and "to release and discharge the said company 
of and from all liability thereon and of and from all and every 
claim and demand whatsoever, which I now have or might have 
against the said company by reason of or growing out of said 
contract, or on any other account whatsoever ; and the said con- 
tract is hereby terminated and from henceforth declared to be 
null and of no force or effect." 

The required seven hundred dollars were paid; the policy, a 
copy of which is produced on pages 94 and 95, was delivered and 
General Johnston passed out of the company. 

One hesitates to attempt a description of the venerable pro- 
moter's emotions on that day. He parted from his contempora- 
ries in deep disappointment; went to Madison, Wisconsin, to live 
and there died about one year after this incident. The photgraphic 
copies of receipts here reproduced show how payment was ulti- 
mately made of the Johnston policy. 

The process of localization was still going on within the com- 
pany for on March 18, 1859, Mitchell Steever, of Milwaukee, 
was elected Trustee in place of M. S. Prichard, of Janesville ; J. 
F. Willard resigned as Treasurer and Trustees Willard, Sleeper, 
Knowlton, Hutson and Niel, all of Janesville, withdrew from the 
committees on which their names appeared. 

C. D. Nash was elected Treasurer to fill the vacancy and held 
that office until October 19, 1892, when he resigned; Milwaukee 
men were named on committees in place of those from Janes- 
ville and directions were given to procure suitable office rooms and 
furniture. 




Laying a Strong Foundation 99 

Charles Dennis Nash was born at New Haven, Vermont, 
April 19, 1819; spent his youth on his father's farm and was 
educated at Castleton Seminary ; entered the Bank of Middlebury, 

i of which his father was president, 

and for two years was its teller ; 
located temporarily in Milwaukee 
in 1843 and for several years 
bought and sold land and sheep; 
located permanently in Milwaukee 
in 1853 and engaged in the bank- 
ing business; elected Trustee of 
the Northwestern on March 4, 
1859; appointed Treasurer of the 
company March 18, 1859, and held 
that office thirty-three years ; be- 
came a member of the Executive 
Committee on January 30, 1878, 
and a member of the Finance 

„ ^ ._ , Committee at the time of its or- 

C. D. Nash „ 

gamzation, October 19, 1887; re- 
signed as Treasurer October 19, 1892, but remained as Trustee 
and committeeman to the day of his death, March 21, 1897. 

The Milwaukeeans back of the company were earnest for they 
met again on March 26, 1859; accepted the resignation of E. L. 
Dimock as Secretary; provided for the giving of bonds by the 
President, Secretary, Treasurer and all local agents ; requested the 
Committee on Insurance to prepare a system of rules and instruc- 
tions for agents and appointed a committee to recommend a plan 
for operating the company. 

On March 28, 1859, the President was authorized to rent the 
rooms occupied by agent Wilson at the corner of Broadway and 
Wisconsin street for $200 per annum and to furnish them in a 
fitting manner. A committee of three was also appointed with 
full power to purchase a safe. This was important and the meet- 
ing proceeded to such minor details as the continuation of city 
agent H. G. Wilson in his employment ; the naming of Doctors 
O. P. Wolcott, Lewis McKnight and D. T. Brown as Medical 
Examiners for the company and the appointment of Dr. E. B. 
Wolcott as Consulting Physician. 



ioo Laying a Strong Foundation 

The Trustees met at the noon hour of April 2, 1859, i n s P e ~ 
cial session, for the purpose of electing a Secretary of the com- 
pany, but the new safe had been installed in the meantime and 
this took precedence over all other matters. The committee re- 
ported that it had purchased a safe for $90 and had paid $10 to 
have it put into the office. This formal report was accepted and 
an order was voted to pay the bill. President Palmer as he daily 
looks at the mammoth steel, time-lock Diebold, holding its eight 
double combination steel safes, all enclosed within a fire-proof 
vault may doubtless feel no more pride than he did that day as 
one of the members of the original Committee on Safe, when the 
first company strong-box was duly installed and paid for. 

Manifestly some electioneering had been done in the interest 
of candidates for Secretary, for the first ballot showed no choice, 
eleven votes being cast and divided among three candidates. On 
the second ballot, however, A. W. Kellogg received seven votes 
and was declared elected. 

This meeting may be said to have completed the establishment 
of the head office at Milwaukee, with residents of that city in 
control. The Daggett-Kellogg administration was a foundational 
one and on its wisdom and caution was builded much of the later 
success of the company. 

Amherst Willoughby Kellogg, the new Secretary, was born 
in Goshen, Litchfield County, Connecticut, November 13, 1829, 
and now lives in the city of Milwaukee, in good health and mental 
alertness. He came to Wisconsin with his parents in 1836 and 
located in Milwaukee the first day of the following year; went 
to school in the old Court House to Eli Bates and others ; studied 
two years and a half in Rock River Seminary at Mount Morris, 
Illinois ; worked for five years in a general store ; studied again 
six months at Lawrence Institute, Appleton, Wisconsin ; was 
bookkeeper in a lumber office ; was in the lumber business for 
himself for three years and then graduated at Wesleyan Uni- 
versity at Middletown, Connecticut, in 1858, receiving there the 
degree of Bachelor of Arts. Mr. Kellogg was also elected to 
membership in the Phi Beta Kappa fraternity. 

He brought to his duties as Secretary an abundant ability and 
a surprising aptitude. He entered into the details of the business 
with enthusiasm and made the perfunctory work of the office a 



Laying a Strong Foundation 




A. W. Kellogg 



vital force. Mr. Kellogg remained with the company until April 
13, 1870, when he resigned to accept a position with an insurance 
company in Chicago promising more remuneration. This ven- 
ture did not prove a success and 
Mr. Kellogg thereafter followed 
a business career for himself. 

In entering on his duties as Sec- 
retary, Mr. Kellogg found a pe- 
culiar state of affairs. The com- 
. pany owned a few books which 
were unposted and unique of en- 
try; a few of the first pamphlets 
were still on hand; a small num- 
ber of blank policies and applica- 
tions were available ; there were 
some unpaid bills — and no cash. 
The officers had been acting gra- 
tuitously and the only man finan- 
cially benefited — and he merely 
in a negotiable instrument — was 
General Johnston. More than a month elapsed before the Secre- 
tary had money enough in hand to make a deposit with the Treas- 
urer and then the amount was $269.83. 

Little by little, the Secretary planned a system with the help 
of the President and Trustees and gradually built up business on 
the munificent salary of $600 per annum. But even genius for 
office system could not thrive without something substantial on 
which to apply itself, and the energetic Acting General Agent 
Wilson supplied the vehicle. He went out into various parts 
of Wisconsin, picked out, with consummate skill, those men whose 
personalities promised results and turned in business while the 
Secretary studied up ways and means of doing something more 
with the aid of circulars, letters and pamphlets. For nearly two 
years this plan prevailed and the Secretary was the only man in 
the office. If he wanted to bank any money or see a "prospect," 
he was obliged to lock the office door. 

About the first of June 1859, the officers awoke to the fact 
that the laws of the state required an annual statement, although 
its purpose is not exactly apparent. Surely it could not have 



102 Laying a Strong Foundation 

been for any protective purpose as the laws then permitted the in- 
corporation and beginning of business by an institution that had 
no semblance to solvency. Indeed, at no time in the first year or 
two of the existence of the company was there sufficient legal 
responsibility back of it to spell unquestioned solvency, but the 
moral support of its officers gave it prestige. 

Obedient to law, however, the company made its following 
modest first report : 

"To His Excellency, 

Alexander W . Randall, 

Governor of Wisconsin. 

"The President and Trustees of the Mutual Life Insurance 
Company of the State of Wisconsin on this 6th day of June 1859, 
in accordance with a special act of the legislature, would respect- 
fully report : 

"This Company commenced operations by issuing policies in 
accordance with its charter on the 25th clay of last November. 
After three months' business it was deemed advisable to remove 
the principal office of the company to Milwaukee, which removal 
was made by an amendment to the charter and a vote of the Trus- 
tees in March last. On the second day of April new officers were 
elected, since which time a large share of the business of the com- 
pany has been transacted. 

Whole amount of paid-up capital A mutual company 

" " accumulations $9,334.52 

ASSETS 

Cash on hand $ 967.81 

Bills Receivable, Due on Call 4,825.95 

Due in 3, 6 and 9 months 419.81 

Amount in agents' hands 2,623.88 

Accounts 214.69 

Office Furniture 282.38 $9,334.52 



Whole number of policies at risk 137 

Amount of Risks thereon $408,800.00 

received for premiums and policies 12,622.80 

Number and amount of losses None 



Laying a Strong Foundation 103 

Amount of Expenses — Agents' commissions, etc $ 3,688.28 

" reserved for re-insurance None 

of claims unpaid, Bills Payable $ 400.00 

of losses adjusted and unpaid None 

" " " unadjusted and unpaid None 

" premium notes on expired policies (2) $ 201.35 

Whole number of policies issued 190 

amount of risks thereon 555,200.00 

" of premiums received thereon 12,622.80 

" of losses None." 

This was a simple, but sufficient, statement, giving as satis- 
factory information as later laws required, though in a less be- 
wildering mass of figures. 

A meeting of the Trustees was held June 28, 1859, and the 
process of reconstruction was practically completed by the adop- 
tion of new by-laws, the most imporant section of which covered 
the creation of an Executive Committee, possessing all the power 
and authority of the Board of Trustees when not in session, but all 
acts of this committee being subject to confirmation by the board. 

The Executive Committee thus created has been the mainspring 
of the entire works, and just the moment it was provided for, 
the committee appointed at a former meeting to devise a "plan 
of operations" for the company was relieved of that responsibil- 
ity. The same day the Sub-Committee reported the adoption of 
any plan as inexpedient and further consideration of the subject 
was dismissed. 

Immediately on the adoption of these by-laws, the Trustees 
proceeded to the election of an Executive Committee, resulting in 
the choice of Henry L. Palmer, James Bonnell and Charles E. 
Ilsley, all of whom later became more intimately connected with 
the official life of the institution, Mr. Palmer in various capacities, 
Mr. Bonnell as Vice President and Mr Ilsley as a member of 
various important committees for many years. 

The committee went to work, and the records it was required 
to keep, show diligent application and wise discretion. On July 
5, 1859, ^ entered into a renewed contract with Henry G. Wil- 
son to travel all about the state instituting agencies and soliciting 
business, but his commission was limited to not exceed ten per 
cent of the premium for the first year with a salary of $100 per 
month and traveling expenses. 



104 Laying a Strong Foundation 

Questions of concessions began to arise and it is noted that 
by a resolution adopted July 30, 1859, it was voted to take risks 
on railroad conductors, express messengers and mail agents at 
ordinary rates with one-half of one per centum added and on 
October 4, 1859, ft was decided to charge one per cent in addi- 
tion to the usual rates, for permission to visit any point in Cali- 
fornia, Oregon, Washington Territory, and Kansas and Nebraska 
west of the one hundredth parallel of west longitude. 

Carl Schurz, then a resident of Watertown, Wisconsin, was 
elected a Trustee on Septembr 6, 1859, and served until 1861, 
when his services were tendered to and accepted by the Union. 
It is quite possible that this distinguished citizen would have 
otherwise continued many years a Trustee of the company, but 
as it was, his connection with the institution was helpful to it 
among the Germans of the state and nation. 

A great scare came to the officers of the young company on 
November 2, 1859, when the news reached the office that an ex- 
cursion train bearing a large number of prominent citizens of 
Wisconsin to celebrate the opening of the Chicago, Northwestern 
road from Janesville to Fond du Lac, had met with a serious 
disaster at Johnson's Creek and that fourteen lives had been lost. 
The excursion was made up of passengers from W T atertown, 
Fond du Lac and Oshkosh where there were already quite a 
number of policyholders, and a few — a very few — deaths meant 
absolute disaster to the company. 

Fortunately but one man instantly killed, was a policyholder, 
Charles Petersilia, a prominent merchant of Oshkosh, and but 
one, V. B. Smead, of Fond du Lac, was fatally injured. Mr. 
Petersilia had taken out a policy for $2,500 within three months 
and Mr. Smead's policy of $1,000 had been running about seven 
months when he died. 

President Dagget saw in the disaster, notwithstanding it was 
full of embarrassment to the company owing to the fact it lacked 
sufficient funds to liquidate the losses, an opportunity to do a good 
deed and one that would redound to the benefit of the company. 
He favored an immediate settlement of the Petersilia claim, waiv- 
ing the ninety-day privilege, and calling a meeting of the Execu- 
tive Committee to consider the proposition. There was no ques- 
tion of means with him; the whole problem was one of expe- 




Presidents 



John H. Van Dyke 
1869-1874 

Samuel S. Daggett 
1859-1868 



Henry L. Palmee 

1874 

Joseph A. Sleeper 

Aug. 1858-Nov. 1858 



Lester Sexton 

Jan. 1869-Mch. 
H. W. Collins 

1858-1859 



Laying a Strong Foundation 107 

diency. He already knew the methods he would pursue to raise 
the money ; what he wanted was authority. The Executive Com- 
mittee met November 9, 1859, and authorized the President to 
borrow sufficient money, with the amount on hand, to pay the 
loss, and immediately a sixty-day note for $1,500 endorsed by S. 
S. Daggett, personally, and by C. D. Nash, as Treasurer, was dis- 
counted and the claim paid. 

This, then, is the brief history of the first loss ever sustain- 
ed by the company — a loss paid promptly even with the aid of 
personal credit. And President Daggett did not overlook the op- 
portunity the sad accident gave for calling attention to life in- 
surance. He had a pamphlet prepared on the subject and sent 
solicitors to the towns that had suffered loss to take applications. 
Each one of the thirty-four agents then employed by the company 
in Minnesota and Wisconsin was also well supplied with the pam- 
phlet, and it was productive of good results. 

The Whitewater branch contract was unsatisfactory to the 
new regime and even some of the Whitewater Trustees were con- 
vinced that the objects for which that contract had been made 
could not be attained under existing conditions. As 



1 Q CX C\ a matter °f history, on August 27, 1859, Rufus 
1 O D U Cheney, Jr., and Sheldon C. Hall, two of them, 



endorsed on their contract "that the interest of all 

parties herein interested will be promoted by the canceling of 
this contract. We hereby resign and relinquish all our right, 
title and interest herein." 

It was not until January 9, i860, however, that the Executive 
Committee declared the contract null and void and discontinued 
the branch. Complete settlement of the affairs took until April 
18, i860, when a resolution was adopted releasing the White- 
water Trustees from all further liability on account of said con- 
tract, and the branch went out of business. All future transac- 
tions of the company emanated from and were supervised by of- 
ficers at the home office. 

In these modern days of splendid equipments and small dan- 
gers, one reads with interest that on March 3, i860, the Executive 
Committee decided that the extra rate for a round trip to and 
from California each way should be one-half of one per cent with 
no extra charge for residence there, except for those engaged in 



108 Laying a Strong Foundation 

mining, who were required to pay one per centum per annum. 
The extra rate for Pike's Peak and vicinity was also established 
at one-half of one per centum per annum. 

The company had been operating in Minnesota without any 
official sanction from the state for some time, but now the ques- 
tion of further extension came up for consideration. The Presi- 
dent was instructed to ascertain on what terms a suitable agent 
could be employed there, it being deemed expedient that the terri- 
tory should be included within the operations of the company. 

On June 16, i860, the first resolution with reference to the 
loan feature of the company's business was adopted, when with 
due solemnity the Executive Committee voted that "it was ex- 
pedient to loan, on unincumbered real estate at ten per cent inter- 
est, $3,000 of the funds of the company" and on July 9, i860, 
the first real estate loan ever made by the company was voted 
Charles Horning, of Milwaukee, Wisconsin, in the sum of $600. 
On this as a nucleus, the company has builded a real estate loan 
business that on the first day of January 1908 showed an out- 
standing total of $121,740,637.11 worth of mortgages on hand. 

One of the most crushing disasters that ever occurred to the 
city of Milwaukee came on the morning of September 8, i860, 
when the Lady Elgin, a lake steamer carrying an excursion party 
of Milwaukee military companies, collided with the schooner 
Augusta off Winnetka Point in Lake Michigan, and sank, in- 
volving a loss of about 400 lives. The appalling disaster cast a 
gloom over Milwaukee, the state and, indeed, the nation. When 
the first shock of the calamity wore away, the officials took time 
to investigate the company's loss, to find that Milton Townsend 
was the only policyholder. Again the company promptly paid the 
claim, continuing its early policy of the promptest payment con- 
sistent with safety that has always characterized the company's 
dealings with losses. 

The Northwestern may now be said to have learned to stand 
alone. Business was coming in right along; the organization was 
on a systematic basis; it had been lucky and there was every 
pleasant prospect ahead. Naturally, there were still crudities in 
some of its ways, but the injection of business methods into its 
affairs, was having its good effect. 

One of the undesirable legacies that fell to the new manage- 



Laying a Strong Foundation 109 

ment was the method of taking part cash and part note for pre- 
miums. On December 31, i860 the Executive Committee posi- 
tively decided that on all policies issued after the first day of 
February 1861, the whole amount of the premiums should be re- 
quired in cash and that no notes should be taken for any part of 
the premiums on insurance effected after that date. This was to 
the point, emphatic and business-like. 

The year 1861 was a trying one for managers of life insur- 
ance companies, particularly the old ones of the east that had 
southern agencies. The difficulties which surrounded them, says 
the compiler of the semi-centennial history of the 
New York Life Insurance company, "were no less 
perplexing than those which confronted the Gov- 
ernment at Washington. Their contracts were of 



1861 



a peculiar kind; they required periodical payments, and the haz- 
ard of them was increased by a state of war. * * * Trade 
and commerce were almost at a standstill ; exchange was held at 
ruinous rates ; communication between the north and south was 
frequently interrupted, and finally cut off altogether. 

"Looking back upon these troublous times, it is easy to see 
now what course would have been consistent and easy; but then 
the future was a sealed book, and every new leaf, as it was turn- 
ed, brought new surprises and perplexities." 

The new and small, but thriving, Wisconsin company was 
probably not as largely concerned with the war news that then pre- 
vailed as the older and larger companies, but it had many serious 
questions in common with them and was wise enough in those 
troublous times to profit by their example. 

The day after the first gun of the war was fired the Executive 
Committee met to discuss the plan of a non- forfeiting policy, the 
premium of which should be "payable all up for life" in ten years. 
The war news disturbed them, and one can imagine that the 
minds of the officers were filled with apprehension of the excit- 
ing events that followed in rapid succession. 

It will be recalled that on April 15, 1861, President Lincoln 
issued a proclamation calling for 75,000 volunteers for three 
months service, and this brought the war as an actuality square- 
ly before the Executive Committee. Something had to be done. 
A meeting was held April 16, and the subject was discussed, but 



no Laying a Strong Foundation 

it was decided to await more definite information before taking 
any decisive action. That information came more rapidly than 
was anticipated and it was only a few days later, April 27, 1861, 
that the Executive Committee voted to adopt the same plan of 
action recommended by the committee of eastern companies 
about that time, to-wit : To grant war risks to those insured re- 
maining north of the 34th parallel of north latitude for five per 
cent extra annual premium to be paid in advance, and to those 
going south of the 34th parallel for five per cent additional extra 
premium. And this remained the policy of the company with 
such incidental additions as special circumstances required. Na- 
turally, the Mutual Life of Wisconsin, being a new company and 
operating in but a comparatively limited field, had not nearly as 
many perplexing questions to solve as older companies, but it had 
enough of them. 

By the time the annual statement was ready in June 1861, the 
company had something substantial to report. It had outstand- 
ing insurance in force to the amount of $1,554,000 and assets of 
$28,494.06. Elizur Wright, the greatest insurance genius this 
country has ever known, had examined the statement and valu- 
ed the policies, and he congratulated the company as well as "the 
whole of Central North America on a commencement so auspi- 
cious." 

The Trustees felt so elated over the showing that they sent 
out a circular to policyholders in which they said : "In presenting 
the annual report to the policyholders, the Trustees take occasion 
to congratulate them upon a success already achieved which in 
the language of one peculiarly qualified to judge would, under 
ordinary circumstances, be indeed 'remarkable' and which under 
the circumstances of the present case is much more so. Com- 
mencing at a time when business was prostrated by a financial 
revulsion and when confidence in western institutions had receiv- 
ed heavy and almost fatal shocks from the action of some of the 
prominent corporations of the state, the company has had to con- 
tend against and overcome widespread and deep-seated prejudice 
against any institution incorporated and managed in Wisconsin." 

Special attention was also called to the action heretofore re- 
ferred to in restoring the business to the basis of cash premiums 
and the hope was expressed that the wisdom of the movement 



Laying a Strong Foundation in 

would be apparent in the rapid accumulation of interest and the 
stability and confidence which such assets would give the com- 
pany. Experience shows that this confidence was well-founded. 

This first official talk from home office to policyholders closed 
with an admonition just as forceful today as it was away back 
on that June day of 1861 when it was written. This was : "Allow 
us to remind you that every policyholder is a member of the com- 
pany, and thus directly interested in increasing its business, and 
you will, therefore, labor for your personal interest and confer 
a favor upon your friends by persuading them to join us." 

By the middle of 1861, the company had a fine corps of solici- 
tors in the field and was issuing three kinds of policies; those 
for the whole term of life, payable — together with the declared 
profits — after the death of the assured to the beneficiary; those 
on which the premiums ceased at a given age and endowment 
policies, payable at a given age or at death. The officers had been 
talking for a long time about a new policy and finally on June 4, 
1861, the company departed on its long and still continuing jour- 
ney over the road of liberalization in policy-contracts, by the adop- 
tion of a new contract described in the first manual to agents of 
1861 as "Non-Forfeiting Policies." 

That a comprehensive idea of the extent of the liberalization 
may be gained, a chapter will be devoted to the general subject 
of the development and liberalization of policy contracts, obviat- 
ing special mention, each year, of the changes. 

The business now warranted help for the Secretary, and on 
September 6, 1861, the first non-official employee of the company, 
John D. Peck, was employed. He remained for about two years 
when he went into business for himself, returning, however, in 
1867 to stay several more years. 

With applications for real estate loans carrying interest at the 
rate of ten per centum per annum coming in, it required consider- 
able business fortitude and more patriotism to start the year 1862 
with a resolution adopted February 21, 1862, to 



1862 



suspend until further action, the making of real 
estate loans for the purpose of accumulating a fund 
to invest in United States stocks or state bonds, but 
either the resolution was not strictly enforced or money was com- 
ing in slowly, as it was not until April 19, 1862, that it was voted 



112 Laying a Strong Foundation 

to invest $4,000 in United States 7-30's, those old form of bonds 
popularized by Jay Cooke. 

At the meeting of February 21, 1862, a permit was issued to 
William Strickland to accompany the Butler expedition to Mobile 
on payment of a ten per cent additional rate, payable three months 
at a time in advance. This action is particularly interesting when 
one knows that Mr. Strickland had, about two years prior to this 
date, been driven out of Mobile for keeping on sale in his book- 
store copies of Mrs. Stowe's "Uncle Tom's Cabin," and that he 
was quite probably delighted at the prospect of returning there — 
in the particular manner in which he proposed to go. 

On March 12, 1862, an agency contract was made with John 
G. McKindley, then principal of a school at Kenosha and sub- 
sequently Superintendent of Agencies of the company. He was 
a splendid man; a successful solicitor and a fine executive. His 
administration of the Agency department was eminently satisfac- 
tory and productive. 

The lease of the offices of the company having expired, and 
more space being necessary, on May I, 1862, they were removed 
to the ground floor of the building known as the Iron Block, in 
Milwaukee, located on Wisconsin street, at what was then No. 
14, but now No. 87. 

The annual meeting of the Trustees held on June 2, 1862, com- 
pleted the practical reorganization of the company. Of all the 
original incorporators and Trustees, John H. Rountree alone re- 
mained to be re-elected at the meeting, which was further memor- 
able because it introduced into the board, John H. Van Dyke, of 
Milwaukee, who afterward became President of the company 
and remained a Trustee for forty-two years. 

The annual statement presented at this meeting by the Execu- 
tive Committee was most encouraging to members and the cir- 
cular which was issued at the time shows that during the year the 
company more than doubled its membership, nearly doubled the 
assets, all at a less ratio of expense than any other company of 
equal age, and invited the comment from Elizur Wright that "the 
policy adopted and the success attained seem to promise the 
Northwest, at an early date, an institution which will combine all 
the advantages of breadth of basis and home- control." Time 
proved that he was right in all save his territorial restriction. 



Laying a Strong Foundation 113 

Having now become thoroughly established and working on 
a splendid business basis, the affairs of the company ran smooth- 
ly. The excitement accompanying the war naturally had its ef- 
fect, but the band of splendid agents which had been attracted 
to the company kept right on writing business which is the basic 
necessity for all irsurance companies. Now and then practical 
questions emanating from the presence of war arose and the gen- 
eral policy of insurance companies then existing was followed in 
the main. 

On August 7, 1862, the Executive Committee decided to grant 
war permits to any of its members who volunteered or were draft- 
ed in the United States service on the same basis as in 1861, but 
a question arising as to whether or not this applied to future, as 
well as past, business, it was definitely determined on August 26, 
1862, that it referred merely to business written before August 
7, 1862. 

In the estimation of the two active workers in the office of 
the company at that time, this particular year was memorable 
because it provided for the second helper on the staff, Avery S. 
Willey, an efficient bookkeeper who remained in the employ of 
the company until July 1869. 

The year 1863 was destined to be in every respect an active 
one. New territory was being constantly opened; agents were 
successful in their quest for business ; novel questions involving 
definite business policies were constantly arising 
and the officers were kept busy attending meetings 
and considering essentials. 

The Secretary of the company who had been 
absent from the office two months on account of ill-health super- 
induced by overwork, returned about January and from that 
time on to the end of the year many important questions arose 
and were decided. 

Before considering them, however, it must be noted that on 
March 1, 1863, the company made an agency contract with Heber 
Smith, of Watertown, who afterward became an officer of the 
company. 

In this connection it may be well to understand that the limita- 
tions of space will not permit a reference to all agency appoint- 
ments. A complete history of the Agency department would re- 



1863 



ii4 Laying a Strong Foundation 

quire a volume by itself. Only those whose names have become 
linked with the management of the company will be specially 
mentioned, except in the exhibit of General Agents hereafter 
shown. It may be said in passing, however, that no life insurance 
company ever had a more able and earnest corps of agents than 
has been connected with this organization beginning away back 
in the early years of the state and continuing down to this semi- 
centennial anniversary. 

The success of the agency work of the company has been 
largely due to the caliber of the men employed, but the company's 
system of agency organization and supervision has had much to 
do with the grand accomplishments of the department. 

War questions came up early in the year, for on March 9, 
1863, the Executive Committee decided that service in an organ- 
ized company of the militia not in the service of the United States 
but temporarily called out by competent authority to suppress a 
riot, was not military service such as would vitiate a policy, and 
that whenever a person insured in the company should be drafted 
into the military service of the country under the Conscript Act, 
the company would give a war permit to applicants when desired 
on the usual terms. 

Chapter 323, of the private and local laws of 1863, approved 
March 23, 1863, was the most important piece of legislation that 
had been enacted with reference to the company and its affairs, 
and standing alone, without any explanation, would today give 
one a fair opportunity to judge that the young Wisconsin life in- 
surance company was expanding and meeting success. 

This act removed the restriction requiring all Trustees to be 
residents of Wisconsin ; provided that the President should be a 
Trustee ; changed the time of holding annual meetings to the sec- 
ond Wednesday in June ; enlarged the earning possibilities of the 
company by permitting it to loan on real estate mortgages outside 
the state and authorized the loaning to policy! olders of an amount 
not exceeding one-half the annual premium on their policies. Not 
only this, but the act further provided that the dividend period 
might be changed from five years to annual, biennial, triennial or 
five year periods and permitted the application of dividends to- 
ward the payment of premiums or to the purchase of additional 
insurance. 



Laying a Strong Foundation 115 

Here was, indeed, progression. Five years of age and a na- 
tional institution — equipped with rights some of which have not 
been changed nor improved with years. 

The same spirit of patriotism that was manifest in a former 
resolution was shown in one adopted by the Executive Committee 
April 18, 1863, directing that thereafter all funds subject to loan 
should be invested in Government 5-20's until otherwise ordered. 

On June 30, 1863, there arose a condition which, in the light of 
their experience, looked important to the officials. A borrower 
had made default in his interest and this was a formidable mat- 
ter in those days. The interests of the company were considered 
paramount, naturally, and the Executive Committee adopted an 
elaborate resolution, preceded by explanatory preambles, that 
covers two full pages of the record book, electing to exercise its 
option to declare the whole sum due on the default made, and 
providing for the transmission of a copy of the resolution to the 
delinquent borrower. In later days, defaults were not always so 
seriously considered; at least, there was not so much formality 
connected with the consequences. 

At the annual meeting of policyholders held June 10, 1863, 
among the Trustees elected was Charles Scheffer, of St. Paul, 
Minnesota, who had the distinction of having been the first man 
outside of Wisconsin to be elected to the office. 

The annual report presented at that time carried renewed con- 
gratulations of the Executive Committee to the policyholders and 
showed a gain of 53 per cent in assets. It also told of the per- 
sonal examination of the company by Elizur Wright and its sub- 
sequent entry into Massachusetts, as well as expansion into other 
fields. Again the committee called attention to the basic fact 
that company officials have always sought to have policyholders 
realize : This is your company. That was the burden of official 
information in early days and the changes and successes of after 
years have not altered the principle in any way. This is the policy- 
holders' company. What makes for its success, adds value to 
policies ; what mulcts the company and involves it in unnecessary 
expense, the policyholders pay. 

At the election of officers at this meeting, Dr. Wolcott having 
determined to retire as Vice President, John H. Van Dyke was 
chosen his successor on the first ballot, but on his positive de- 



n6 Laying a Strong Foundation 

clination to serve owing to pressure of other business, James 
Bonnell was elected. Mr. Bonnell remained in office but a single 
year and was not actively identified with the executive work of 
the company. 

It may be interesting to note that the salaries for the en- 
suing year were set as follows: President, $1,200; Secretary, 
$1,600 and General Agent, $2,500. The two clerks were each 
to be paid $600 per annum. 

The business of the company being by this time well ground- 
ed and all prospects for the future bright, the ultimate necessity 
for a company office building became apparent. At a meeting of 
the Executive Committee held July 23, 1863, therefore, the Presi- 
dent was instructed to purchase twenty by sixty-six feet at the 
northwest corner of Wisconsin and Main streets, Milwaukee, for 
the purpose. Main street has since been named Broadway. 
Here, afterward, the first home office of the company was built. 

In September 1863, the office force was increased by the hir- 
ing of William H. Farnham.. Mr. Farnham was born at Water- 
ville, Oneida County, New York, July 9, 1841 ; removed to the 
west early in life and came to the company from Horicon, Wis- 
consin, in response to an advertisement. He enlisted in Com- 
pany "A" 48th Wisconsin Volunteers, February 25, 1865, and 
served until January 12, 1866, when he returned to the company 
and met promotion in his work, being elected Assistant Secretary 
July 18, 1883, which position he held until March 6, 1890, when 
he gave up his life as a result of hard work on behalf of the com- 
pany. He was an unceasing worker and his name is held in high 
regard by the officials. 

The original charter provided that at the expiration of five 
years from the time the first policy was issued, a balance of the 
affairs of the company should be struck and each member should 
be credited with an equitable share of the profits. This first divi- 
dend period was fast approaching and definite action was neces- 
sary. 

In preparation for this event, Elizur Wright was induced to 
visit the offices, make a scientific investigation of the company 
and advise the officers. He was present at the meeting of the 
Executive Committee held September 23, 1863, at which the fol- 
lowing was adopted : 



Laying a Strong Foundation 117 

"RESOLVED, That a dividend of the surplus earnings of this 
company for the five years ending on the first day of January A. D., 
1864, be and the same is hereby declared and directed to be made 
among the assured, pursuant to the provisions of the act of incorpo- 
ration upon the following basis, viz.: 

First: A reserve above the net valuation by the actuary's table of 
mortality at four per cent interest, of ten per cent shall be retained. 

Second: A division of the surplus shall be so made that each mem- 
ber may share in the surplus in the ratio of his contribution thereto. 

Third: The payment of the dividend shall be made by endorse- 
ment of the amount on the notes of those having given notes and 
by the allowance thereof on the next premiums to those who have 
paid cash, or applied to the purchase of additional insurance on such 
as are insurable, at the option of the company." 

A week later the dividend period was changed to December 
1, 1863. 

As a result of the visit to the company by Mr. Wright, the 
Executive Committee on November 24, 1S63, concluded to receive 
notes in part payment of annual premiums from all persons insur- 
ing who should give them in accordance with a table then adopted. 
A circular was issued giving the rate of premium, the cash and 
note payments, and explaining the new system. 



Change of Name and General Expansion 



1864 



ALTHOUGH the first dividend of the company had been 
/-\ declared, the exact figures and amounts were not yet as- 
-*■ -*- certained and the data had been sent to Elizur Wright 
to ascertain and report. It was a long and involved operation 
and it was not until late in February that the computations were 
made and consultations had with the great actuary. It was found 
that the standard reserve was sufficient without the 
added ten per cent provided in the resolutions of 
September 23, 1863, especially as the average rate 
of interest was over six per centum, and a resolu- 
tion was therefore adopted by the Executive Committee that forty 
per centum of the estimated dividend be added to itself and that 
this amount be allowed to each policyholder at the settlement of 
his next premium. 

In the meantime, however, the year 1864 had not gotten fair- 
ly started before the necessity for a Cashier of the business being 
made apparent, Edward Ilsley, afterward Actuary of the com- 
pany, was appointed. Mr. Ilsley remained with the company 
until January 25, 1871. 

A provision having been made for quarterly meetings of the 
Board of Trustees, the first quarterly meeting of 1864 was held 
March 7, at which the resignation of H. G. Wilson as General 
Agent was reluctantly accepted. Mr. Wilson had been largely 
responsible for the removal of the home office of the company to 
Milwaukee and he had worked hard in its expansion. Nothing 
but a desire to benefit the health of his family induced him to 
sever official relations with the company and he left with the good 
wishes of all the officers following him. As a token of apprecia- 
tion, at the Executive Committee meeting on March 10, 1864, he 
was given an allowance for extra expenditures and services. Mr. 
Wilson died at St. Louis, Missouri, August 20, 1901. 

J. G. McKindley was on March 19, 1864, appointed General 
Agent in his place. 

118 




James Bonnell 

1863-1864 
Willaed Merrill 

1894-1905 
Alexander Graham 

Aug. 1858-Dec. 1858 
Lester Sexton 

1866-1869 



Vice-Presidents 

George C. Markham 

1905 

Augustus H. Scoville 

1858-1859 
Oren E. Britt 

1874-1876 



Erastus B. Wolcott 

1859-1863 
Matthew Keenan 

1876-1894 
William M. Sinclair 

1864-1866 
Heber Smith 

1869-1874 



Change of Name and General Expansion 121 

The dividend declaration by the young company had created 
any amount of interest among policyholders and agents, and the 
officers were prompted by inquiries with reference to its future 
course in that regard to adopt a definite plan. At a meeting of 
the Executive Committee held March 31, 1864, the following was 
adopted : 

"RESOLVED, that the books be balanced for the next dividend 
on the first of December 1866, and thereafter annually, and that a 
dividend be made on the first day of March 1867 on the business of 
the year ending December 1, 1864, and thereafter annually upon the 
business of each year succeeding December 1, 1864." 

This was supplemented at the meeting of April 5, 1864, by the 
following : 

"RESOLVED, that all members who die before the dividend is 
declared shall receive (through their representatives) full benefit of 
the dividend when made upon all the premiums they have paid. 

"RESOLVED, that the additional insurance which can be pur- 
chased by the dividend shall not become forfeited by any non-pay- 
ment of premium on the policy after the dividend has been so 
credited." 

The steady growth of the company made it apparent that it 
would soon need a home of its own and a proposition having been 
received on April 12, 1864, to sell the company nineteen feet and 
two inches additional to its twenty feet front on Wisconsin 
street, the offer was accepted and the transaction consummated. 
The office building was not erected until later, but as the acquired 
property was productive of rent, the company lost nothing by 
holding it. 

At the annual meeting of the policyholders held June 8, 1864, 
the usual report on the election of new Trustees was received and 
officers were elected. It is well in this connection to explain that 
a table will be found on later pages giving the names and dates of 
service of all Trustees of the company, obviating the need of not- 
ing who were chosen at each annual meeting. 

The only change in officers at the meeting of the Trustees held 
that same day, was the election of William M. Sinclair, who had 
been elected a Trustee in 1863, as Vice President. 

William M. Sinclair was born in Ireland November 18, 1819; 
established a wholesale grocery business in Milwaukee in 1861 ; 



122 Change of Name and General Expansion 

was elected a Trustee in 1863, serving until 1867, when he re- 
moved to Philadelphia; was Vice President from 1864 to 1867; 
was again elected a Trustee in 1890 and died at Philadelphia 
July 31, 1891. 

As indicating the spirit actuating the company in dealing with 
losses in those pioneer days a case that was presented to the Exec- 
utive Committee on July 5, 1864, may be cited. Captain M. G. 
Townsend was reported dead but no proof of death could be 
made. Circumstances surrounding his disappearance and sub- 
sequent non-appearance pointed strongly toward his death, but 
direct testimony was not available. The officers might easily and 
reasonably have asked for positive evidence or waited until legal 
presumption of death had arisen, but instead voted to pay the loss 
on receiving a bond of indemnity. True, this action involved no 
chance on the part of the company and it would not have been 
justified had it done so, but it manifested a spirit of fairness and 
liberality. 

In August 1864, there came in to the office a man who is now 
one of Milwaukee's most venerated citizens, Samuel R. Kem- 
per, son of the great first missionary bishop of Wisconsin of the 
Protestant Episcopal Church. Mr. Kemper has at different times 
served the company in various positions. 

In October 1864, the system of medical supervision over ap- 
plications for insurance then in vogue, not being entirely satis- 
factory, it was decided that an Examiner should be appointed who 
would give sufficient time each day from his regular practice to 
attend to the growing needs of this department. Dr. Lewis Mc- 
Knight was named for the position at a salary of $1,000 per year 
and his appointment was the primary cause of the later establish- 
ment of a Medical department unrivaled in efficiency in the coun- 
try. Further reference to Dr. McKnight and the department will 
be made in the course of this history. 

In the latter part of 1864, began consideration of a proposed 
change in the name of the company that would better indicate its 
comprehensiveness. Its existing name carried an implied limita- 
tion. The subject was informally considered by the Executive 
Committee at a meeting held December 5, 1864, and the name then 
suggested was The Northwestern Life Insurance Company, but 
no definite action was taken. At a later meeting, the subject 



Change of Name and General Expansion 123 

again came up and it was decided to ask the legislature to change 
the corporate name to one of the following: The Northwestern 
Life Insurance Company; The Northwestern Mutual Life Insur- 
ance Company or The Mutual Life Insurance Company of 
the Northwest. At this same meeting the Executive Committee 
resolved to recommend to the Trustees that they ask the legisla- 
ture to exempt the company's accumulations from taxation. 

The Trustees met on December 14, 1864, and the question of 
the proposed change in name came up in a formal way. Judge 
Palmer stated that in order to bring the question before the board 
he would move that the Executive Committee be authorized to 
apply to the legislature for an amendment to the charter changing 
the name to The Mutual Life Insurance Company of the North- 
west, but explained that he would probably vote against the 
motion, himself. Mr. Van Dyke moved to substitute The North- 
western Life Insurance Company, and this was carried "after 
quite a lengthy and spirited discussion," as the records note. 

The strict letter of the resolution was not observed, how- 
ever, as the word "Mutual" was incorporated in the name which 
was changed by chapter I, Laws of 1865, approved January 20, 
1865, to The Northwestern Mutual Life Insurance 
Company. The same act also changed the date of 
the annual meeting of the company from June to 
January. 

The change in name which was made effective by the law on 
March 1, 1865, involved a tremendous amount of work. All 
the applications, policies, circulars, pamphlets, letterheads and 
envelopes had to be changed and everything had to be adjusted in 
a couple of months. But it was a desirable change. The new 
name was more comprehensive and indicative of the enlarged 
usefulness of the organization. 

The year 1865 may be written down as an expanding one in 
the history of the company. The well-grounded foundation work 
of the earlier years manifested itself in the smoothness and ease 
of further development. On March 27, 1865, the company made 
arrangements to renew for five years the contract of General 
Agent McKindley, who had the field force splendidly organized. 
The growing business required more room for office pur- 
poses and a resolution was adopted April 24, 1865, authorizing 



1865 



124 Change of Name and General Expansion 

the President to procure suitable offices. Lewis Blake had a room 
at No. 294 Main street that was wanted, but he refused to rent, 
making a proposition, however, to sell the company his build- 
ing No. 416 Main street, now Broadway, nearly opposite the old 
insurance building. April 29, 1865, it was concluded to buy Mr. 
Blake's building and on May 15, 1865, the purchase was con- 
summated. The removal soon followed. 

The first annual meeting under the new name and in the new 
building was held June 14, 1865, and following the policyholders' 
meeting, the Trustees convened and elected the incumbents of the 
several offices. During the course of the meeting another of those 
"spirited and lengthy discussions" that are so frequently noted in 
the records, occurred, the subject being the loan of $50,000 voted 
by the Executive Committee on January 28, 1865, on the Newhall 
House property, the site of the company's present office building. 
It must be understood that the company did not have the whole 
amount of the loan then on hand but the borrowers understood 
it was to be paid in installments. The relative merits of this sort 
of loan and investments in government securities were brought 
into the discussion and the talk culminated in the introduction of 
a resolution instructing the Executive Committee thereafter to in- 
vest in government or state bonds in preference to all other se- 
curities. Fortunately, it now appears, the resolution was lost by 
a tie vote. 

At this same meeting the time for holding the quarterly meet- 
ings of the Trustees was changed to correspond with the change 
in time of holding the annual meeting, to the second Wednes- 
days of October, April and July. 

The annual report for the year showed an increase of over 
$4,000,000 in new policies in force and total assets of $593,- 
461.84. The Executive Committee reported that the direct war 
losses had been more than covered by the extra premium received 
and added the following: "Now that the war with its dread- 
ed conscriptions and its demoralizing influences upon business 
permanence and stability is over, we trust forever, we look for 
such a rapid and widespread growth in the business of Life As- 
surance as has never before been known." 

Attention was also called in this annual report to the fact that 
the company's field of operations had been extended into new 



C Jiang e of Name and General Expansion 125 

districts in Minnesota, Iowa, Nebraska, Illinois and Michigan and 
that work had started in Indiana. 

The records of the company begin at this point to tell the 
silent story of the company's financial strength, as meeting after 
meeting of the Executive Committee was devoted to the purchase 
of bonds or the making of real estate loans. The difference of 
opinion as to the merit of these two forms of investment still 
continued, but the trend of opinion was disclosed by the adoption 
of a resolution at a meeting of the Executive Committee held De- 
cember 6, 1865, to the effect that the funds of the company then 
in the bank should be invested in government securities. 

Subsequent to the date of the annual meeting the company 
had entered Pennsylvania and the latter part of the year began 
business in Massachusetts, after a correspondence with Elizur 
Wright in which he again complimented the company on its 
"magnificent success." In his letter to the Secretary, he took 
occasion to say that he saw no way by which Massachusetts 
companies could resist the claims of the Northwestern, but sug- 
gested that the law of Massachusetts with reference to forfeitures 
might be the better. Secretary Kellogg responded that the North- 
western was more liberal to Massachusetts policyholders than the 
law required, for instead of giving them four-fifths of the sur- 
render value and requiring them to take it in temporary insur- 
ance, the Northwestern gave them five-fifths, with the option of 
taking it in temporary or full-paid insurance or in cash. 

At the meeting of December 6, 1865, a communication was 
received from Tennessee asking the company to establish an 
agency there, but no definite action was then taken. It will be 
noted, though, that the fair fame of the company was spreading 
and that even as early as 1865, a good foundation was laid for 
an expansion that was ultimately to embrace nearly every State 
in the Union. 

It is interesting to note that at the Executive Committee meet- 
ing held on the evening of January 2, 1866, at the home of the 
President, who was ill, applications for $82,000 of 
real estate loans were considered and it was also de- 
cided to invest $20,000 in government compound 
interest notes providing they could be purchased to 
net 7.3 per centum per annum. 



1866 



126 Change of Name and General Expansion 

At the meeting of the Trustees held January 10, 1866, the in- 
cumbent officers were re-elected, but Mr. Sinclair explained that 
he was about to remove from the city and could not accept the 
office of Vice President, whereupon Lester Sexton was elected. 

Mr. Sexton, it will be recalled, became a Trustee of the com- 
pany in 1858 and had continuously evinced an interest in the de- 
velopment of the business. He served faithfully and ably as Vice 
President until January 13, 1869, when he was elected President. 

The ever recurring question of investment of funds came up 
again at this meeting and it was decided that the surplus funds 
might be invested in either government bonds or real estate se- 
curities or both, a liberal and sensible resolution. 

The further expansion of the company continued in 1866. On 
February 2, 1866, at another evening meeting of the Executive 
Committee, nearly the entire time was taken up with consideration 
of the advisability of entering Tennessee, Kentucky and Missouri. 
April 4, 1866, it was definitely decided to put up the deposit of 
$20,000 then required by Tennessee, and on the same day, a 
resolution was passed appointing a local attorney in Missouri on 
whom process might be served. 

The seventh annual report of the company was issued March 
1, 1866, showing that it had reached the million-mark in ac- 
cumulation; had increased materially the amount of insurance 
written and, indeed, had met, as the report itself states, a success 
almost unparalleled in the history of life insurance. 

The Trustees met April 11, 1866, for a quarterly review of 
progress and to make a change in the by-laws so as to provide 
for a meeting of the Board the day preceding the annual policy 
holders' meeting. The Trustees also fixed the annual compensa- 
tion of the members of the Executive Committee, excepting the 
President, at $250 and provided for a deduction of $5 for non- 
attendance at each meeting. 

The Executive Committee met April 12, 1866, and found over 
$84,000 of applications on hand for real estate loans. But a 
small part of these were voted at this meeting, however, as the 
question of interest-rate was beginning to be an important factor 
in such loans. At this meeting a resolution was actually intro- 
duced to fix the rate at eight per centum per annum, but definite 
decision on the question was abandoned until April 19, 1866, 



Change of Name and General Expansion 127 

when the motion prevailed, after a motion to make the rate nine 
per centum had been practically withdrawn. It was also decided 
at this meeting to insert the existing clause in company real estate 

mortgages requiring mortgagors 
to furnish duplicate tax receipts 
each year. 

One of the old guard of the 

company entered its employ on 

July 1, 1866, when Edgar C. Jen- 

. } nings, up to that time connected 

with the auditor's office of the 

Milwaukee road, was appointed 

Cashier to relieve Mr. Ilsley, who 

w k was also acting Actuary. Mr. 

^^^^J_/^J^|^H|j^^ Jennings continued from that time 

" >J ^^^''-- "■'■ m ^ ie faithful and uninterrupted 

$^$S|P discharge of his increasing du- 

hte Ik Mm ties and responsibilities, until the 

Edgar C. Jennings date of his death ' February 17, 

On October 1, 1866, there came to the employ of the company 
a penman of note in those days, George F. Austin, who was given 
a position in the policy department of the company where he re- 
mained for many years. 

The Executive Committee had been negotiating for an addi- 
tion to the company's holdings at the northwest corner of Main 
and Wisconsin streets for an office site and on November 12, 
1866, the committee decided to buy twenty feet and ten inches 
immediately adjoining on the west, thereby making a frontage 
of sixty feet on Wisconsin street and sixty-six on Main street. 
It appeared at that time as though this ought to be ample for a 
building to meet the demands of the company for all time. 

The balance of 1866 was characterized by that same steady 
growth that was being constantly noted, and yet, on December 
27, 1866, an application for a loan in Minnesota having been re- 
ceived, the Executive Committee voted, after much discussion, 
that for the present and until further orders, all applications for 
loans on property outside the state of Wisconsin must be de- 
clined. 



1867 



128 Change of Name and General Expansion 

The first meeting of the Board of Trustees in accord with the 
change in by-laws for that purpose, was held on the evening pre- 
ceding the annual policyholders' meeting in 1867 and nominations 
for Trustees were made. These nominees were all 
elected the following day and that same afternoon, 
after the polls closed, the Board met. 

The annual report to policyholders showed that 
the assets of the company now reached the "very creditable sum" 
of $1,748,759.14 with 10,749 policies aggregating $15,041,082 of 
insurance in force. 

A new dividend had just been declared on the basis of dis- 
tributing the surplus in proportion to each policyholder's contri- 
bution thereto, and it was eminently satisfactory, ranging from 
fifty-three per cent of the premiums on certain forms of policies 
to forty per cent on others. 

No changes were made in the official staff, but the office of 
Actuary was formally created at this meeting and Edward Ilsley 
was elected to the position, which he held until January 25, 1871. 

Edward Ilsley was born at Portland, Maine, April 8, 1798; 
moved to Eastport shortly after his marriage November 7, 1822 
and was cashier of a bank there until 1847, when he moved to 
Framingham, Massachusetts ; moved to Madison, Wisconsin, in 
1850 and to Milwaukee in 1864; after retiring from the office of 
Actuary, was employed as bookkeeper and accountant in the 
Marshall & Ilsley Bank of Milwaukee. Mr. Ilsley died May 3, 
1886. 

The salaries of the President and Secretary were each fixed 
at $3,500 per annum and those of other employees in the office 
were left to the Executive Committee, which was further charged 
with the duty of procuring plans for a new office-building, to be 
submitted at the next quarterly meeting of the board in April. 

The record of the preliminary meeting of the Trustees held on 
the evening of January 8, 1867, bears a foot-note to the effect 
that the new proprietors of the Newhall House had extended an 
invitation to the Trustees of the company to attend a "supper" 
at that house Wednesday evening January 9, 1867, which invita- 
tion was duly accepted. That time having arrived it was voted 
to adjourn to the Newhall House. 

The supper turned out to be a banquet and aside from its so- 



Change of Name and General Expansion 129 

cial success is noteworthy because it suggested the custom that 
has since developed into an established usage of annually getting 
the agents together at the home office for the purpose of consider- 
ing the general welfare. These 
annual meetings have been most 
helpful to the mutual interests in- 
volved and their beginning, away 
back in 1867, was creditable to the 
* < company. 

V*> ;r : , In connection with the banquet, 

'if it • ^ r " Kellogg, wno act ed as toast- 

jSl ! master, recalls with pride that 

appreciating the value of tem- 

3^ j perance to life insurance men, 

*?ri£.* •"". whether policyholders, agents or 

R™ officers, he held up a luscious 

bunch of grapes and said: "Gen- 

tlemen, in response to toasts, we 

-p, n J-, 1 will take our wine tonight from 

the 'original package.' " 
Agreeable to the instructions of the Trustees, the Executive 
Committee considered the adjustment of salaries at its meeting of 
January 10, 1867, and from the committee's report it appears that 
Dr. E. B. Wolcott was to be paid $650 per annum as Consulting 
Physician ; Dr. Lewis McKnight, Medical Examiner, $2,000 and 
Henry L. Palmer, Counsel, $500 retainer. The following were the 
total number of employees in the office at that time: Edward 
Ilsley, Actuary ; E. C. Jennings, Cashier ; A. S. Willey, book- 
keeper; L. Schuchardt, report clerk; G. F. Austin, policy clerk; 
Patrick Geraghty, J. W. Skinner, W. H. Farnham, F. H. Smith, 
George Young and C. D. Skinner, clerks. 

At the meeting of the Executive Committee held on February 
4, 1867, it was decided that Mr. Palmer should visit the state li- 
brary at Madison, look up the laws respecting the taxation of 
mutual life insurance companies in the several states and either 
draw an amendment to the charter of the company, or a bill to 
exempt from taxation the personal property of domestic insur- 
ance companies. Before this could be done, however, the then 
Secretary of State of Wisconsin, caused bills regulating foreign 



130 Change of Name and General Expansion 

and domestic life insurance companies to be introduced which 
proposed to tax domestic companies three per centum on their 
premium receipts. In the meantime, the state senator from the 
fifth Milwaukee district having died, Henry L. Palmer was elect- 
ed to the office and was enabled by his efforts and the help of 
others to get this rate reduced to one per cent of the premium re- 
ceipts in Wisconsin with an exemption from all other taxation. 
(Chapter 158, Laws of 1867, approved April 11, 1867.) But the 
bill regulating foreign companies passed and carried a provision 
for a license fee of $500 for the first year, with a tax of three 
per centum per annum thereafter on all Wisconsin premiums. 
(Chapter 179, Laws of 1867, approved April 11, 1867.) 

By an act of the legislature of Wisconsin, approved April 12, 
1866, (chapter 100, Laws of 1866) the State Treasurer was re- 
quired to hold such securities as insurance companies might care 
to deposit with him and to give such certificates with relation 
thereto as might be required by the laws of other states. The 
practical effect of this law was to permit the company to operate 
anywhere in the country and at the meeting of the Executive 
Committee held February 25, 1867, a comprehensive resolution 
was passed authorizing the President and Secretary to appoint 
agents in any state or territory of the United States, and to do 
every necessary act in this regard to perfect the agency work, 
protect the company and obey the laws of the several juris- 
dictions. 

In April 1867, there came to the company, George H. Roun- 
tree, son of John H. Rountree, of Platteville, Wisconsin, who has 
the distinction of having remained on the Board of Trustees 
longer than any of the original incorporators of the company — 
from 1857 to 1890. George H. Rountree was first employed as 
a policy clerk, but in 1870 was made purchasing agent of sup- 
plies and remained in that capacity to the date of his death in 
May 1893. 

The absorbing topic of official consideration was now the 
erection of an office building. The Executive Committee was 
busily engaged with the details and the project was the principal 
subject of the Trustees' meeting held April 10, 1867. Indeed, the 
Trustees were manifestly disappointed because in response to 
their previous direction the Executive Committee submitted noth- 



Change of Name and General Expansion 



W 



ing more substantial for consideration than a working room for 
the company in a building proposed to be built by it. The Trus- 
tees, after much discussion, requested the Executive Committee 
to present the plan of a building at their next meeting, which the 
committee proceeded to do. 

It appears that J. G. McKindley, general agent of the company, 
had tendered his resignation on May 20, 1867, but it was not until 
the meeting of May 28 that it was accepted by the Executive 
Committee with formal resolutions of regret, which embraced 
best wishes for success. 

Although it will be remembered, the company had bought 
property on which to erect an office-building, the Trustees were 
beginning to think on October 9, 1867, that the site already owned 
was too small and consequently they authorized the Executive 
Committee to purchase forty by sixty feet more or sell that site 
and buy elsewhere. 

In accordance with this action, the Executive Committee con- 
sidered two propositions: The enlargement of the site already 
purchased at the northwest corner of Main and Wisconsin streets, 
or the purchase of the northeast corner of Main and Michigan 
streets, opposite the present home office. At the meeting of Nov- 
ember 28, 1867, architects presented sketches of a ground plan 
for buildings on both sites and the corner of Main and Wiscon- 
sin streets was thereafter chosen. 

The remarkable growth of the company each year since its or- 
ganization in respect of number of policies written is shown by 
the accompanying table : 



Years 


Jan. 


Feb. 


Mar. 


Apr. 


May 


June 


July 


Aug. 


Sept. 


Oct. 


Nov. 


Dec. 


Total 


1859 


18 


15 


5 


16 


40 


27 


23 


15 


12 


20 


48 


36 


275 


1860 


27 


46 


37 


40 


36 


31 


20 


29 


29 


25 


54 


68 


442 


1861 


65 


24 


32 


40 


48 


80 


71 


38 


65 


62 


108 


126 


759 


1862 


100 


73 


119 


79 


159 


118 


126 


94 


33 


58 


59 


60 


1078 


1863 


70 


81 


150 


121 


216 


166 


201 


142 


186 


183 


187 


338 


2041 


1864 


302 


322 


368 


389 


355 


305 


345 


297 


253 


325 


309 


446 


4016 


1865 


398 


405 


427 


369 


400 


432 


504 


510 


558 


467 


410 


451 


5331 


1866 


510 


500 


561 


409 


505 


576 


502 


507 


506 


481 


446 


538 


6041 


1867 


573 


708 


727 


713 


703 


604 


709 


816 


819 


912 


1177 


1405 


9866 



132 Change of A r amc and General Expansion 

Naturally enough, in keeping with this development, was the 
continued and constant applications for loans, consideration of 
which engaged the greater part of the time of the Executive Com- 
mittee. 

On October 28, 1867, the company received an enthusiastic 
letter from Messrs. Martin & Hopkins, agents at Indianapolis, 
proposing the formation of what they called a local "Board 
of Reference" to consist of influential citizens to meet two or 
three times a year ; examine the statements of the company ; 
satisfy themselves of its solvency and progress and allow their 
names to be used in connection with soliciting. The members of 
the board were to be paid a small sum for attendance upon meet- 
ings. Later, in the 8o's, the company became committed to a 
similar proposition in a modified way but soon abandoned it, 
long before legislation was directed against such arrangements. 

An incidental, albeit important, feature of the latter part of 
1867 and related to the general business of life insurance, but not 
directly connected with the personal history of the Northwestern, 
was the meeting of the Chamber of Life Insurance in New York 
City November 5-8 to consider the question of national super- 
vision. As early as this in the history of the institution, the ex- 
istence of this great question was recognized and something of 
its importance realized. All the leading companies of the coun- 
try were members of this Chamber, and Secretary Kellogg of the 
Northwestern was appointed one of a committee to prepare a bill 
for enactment by congress to establish a National Department of 
Insurance with a Commissioner, whose certificate of valuation and 
solvency should be universally received. Mr. Kellogg made some 
practical suggestions as to campaign and publicity methods in aid 
of the proposition, but the companies themselves failing to agree 
on a definite plan to procure the desired results, the project failed. 
The decision of the Supreme Court of the United States in 
the case of Paul vs. Virginia rendered the next year seemed 
strongly antagonistic to the power of national supervision. (See 
page 139, post.) 

The absorbing topic of interest to the company at the begin- 
ning of 1868 was its new building. The Executive Committee 
had expedited the consummation of official hopes by buying the 
thirty-four feet adjoining the former site on the north, and this 



1868 



Change of Name and General Expansion 133 

arrangement gave the company sixty by one hundred feet on 
the northwest corner of Broadway (formerly Main street) and 
Wisconsin street — one of the best corners at the 
time in the city of Milwaukee. The Trustees rati- 
fied the purchase at their meeting of January 7, 
1868, and the coveted project was fairly launched. 
The old site at 416 Main street was sold. 

It might possibly be interesting to follow through the records 
and with the aid of side-lights the development of the new build- 
ing. Certain it is that the company had its full share of build- 
ers' troubles, but the purpose of history will be sufficiently serv- 
ed by recording that the plans of E. T. Mix, architect, for the 
semi-Gothic stone structure shown in the illustration on page 135 
were duly accepted; James C. Spencer was appointed and served 
as superintendent of construction on behalf of the company; S. 
A. Harrison was awarded the contract for the stone work, the 
carpenter work being done under direction of the company's 
superintendent. After labor troubles and other interruptions the 
building was finally finished. 

The intention had been to celebrate the removal to the new 
building in some substantial and appropriate form, but officials 
were then too busy to think of such things and consequently on 
April 28, 1870, the goods, chattels and effects of the company 
were carted across the street by the working force and the North- 
western took possession of the new building of which it was 
justly proud. 

At the meeting of the Trustees on January 7, 1868, the day 
before the annual meeting, a large number of the agents, being in 
the city, were invited to participate. 

The company had paid the railroad fare one way of these 
agents and the officers felt that the money was well invested. 
They thought the action warranted, and continued so to think for 
many years until it was suggested that it might possibly conflict 
with some state law forbidding bonuses or the like, when the prac- 
tice was abandoned. 

At the meeting next day, January 8, 1868, the annual report 
showed a gratifying increase in general business. The company 
then had 21,380 policies in force, insuring $36,539,333 and the 
assets were more than $3,000,000. 



134 



Change of Name and General Expansion 




Augustus Gaylord 



Aside from the re-election of all the old officers, no business 
of great importance was transacted except to make the salaries 
of the principal officers equal for the first time — $5,000 each for 

the President, Secretary and Gen- 
eral Agent — and to create the of- 
fice of Assistant Secretary, which 
officer was to be elected by the 
Executive Committee. 

The Executive Committee met 
January 27, 1868, and elected 
General Augustus Gaylord as As- 
sistant Secretary. General Gay- 
lord had been Adjutant General 
of Wisconsin throughout the war 
and was well known in the state. 
He began work at once, and 
found so much to do that at the 
end of his first month's service, 
he employed Major James M. 
Lynch, to aid him. Major Lynch 
had served under him in the Adjutant General's office and was 
known to be a competent office man. He was also a genial com- 
panion and his kindly disposition made him a general favorite. 
He served the company in various capacities and was Assistant 
Actuary at the date of his death, June 23, 1882. 

General Gaylord was born in Torringford, Litchfield County, 
Connecticut, February 27, 1826; came to Wisconsin in 1856, set- 
tling at St. Croix Falls ; went to Madison as Adjutant General, 
serving until 1866; located in Milwaukee in 1867; served as As- 
sistant Secretary until July 13, 1870, when he was elected Secre- 
tary; resigned October 15, 1872; removed to New York State 
and died March 30, 1901. 

About this time the officers of the company realized that the 
corporate seal they had been using for ten years had never been 
formally adopted, so a resolution was passed by the Executive 
Committee at a meeting held February 17, 1868, providing that 
the seal theretofore used and bearing the corporate name of the 
company surrounding a banyan tree and the motto "We Spread 
to Protect," be formally adopted. 




Offices Occupied by the Company 



Exchange Block, Janesville 
Lappin Block, Janesville 
416 Main St. (now Broadway), 
Milwaukee 



4. S. W. Cor. Main and Wisconsin Sts., 

Milwaukee 

5. Iron Block, Milwaukee 

6. Old Insurance Building, Milwaukee 



7. Present Home Office 



Change of Name and General Expansion 137 

The act passed by the legislature of Wisconsin, chapter 100, 
Laws of 1866, approved April 12, 1866, to enable domestic com- 
panies to do business in other states without making a deposit 
therein, required the State Treasurer to hold such bonds or other 
securities as Wisconsin companies might offer, and in order to 
avail itself of this privilege, on March 30, 1868 it was voted to 
buy sufficient bonds to make the total $100,000, the required 
amount. 

The meeting of the Trustees held April 8, 1868, was one 
of the most interesting disclosed by the early records of the com- 
pany. John Lawler had resigned as Trustee after a service of six 
years. James C. Spencer had been named as a candidate for his 
successor in the notice of election and was under the then by- 
laws of the company the only one eligible at that meeting. 

His friends, therefore, were anxious to have the election 
proceed, but there were others who preferred to have the choice 
postponed, that other nominations might be made. The question 
was important on account of the consequences involved. Presi- 
dent Daggett was in poor health and a resolution had been pre- 
sented to the meeting that in case of the absence or disability of 
the President, a President pro tempore might be appointed by 
the Trustees, with full presidential powers. It will be observed 
that this resolution ignored the Vice President. It was lost, but 
finally the idea prevailed in this form : 

"A President pro tempore may be appointed by the Trustees, who 
in case of the absence or inability of the President and Vice Presi- 
dent to attend to their duties, shall exercise the powers and perform 
the duties of the President during the co'ntinuance of such absence or 
inability." 

This having been settled, the friends of Mr. Spencer moved 
to proceed to a ballot for Trustee to fill the Lawler vacancy, but 
a motion to postpone the election prevailed. Later in the meet- 
ing, however, this was reconsidered and Mr. Spencer was elected. 

Immediately, Mr. Spencer was nominated for President pro 
tempore, but the name of S. D. Hastings, being presented, a ballot 
was necessary. There was no choice on the first, but on the sec- 
ond, Mr. Hastings was chosen by a vote of ten to nine. 

Attention is called to this incident merely to show that the 
proceedings of the company's Trustees have by no means been 



138 Change of Name and General Expansion 

perfunctory. Business has been transacted at their meetings and 
friendly contests indulged just as often as business reasons justi- 
fied them. 

The illness of President Daggett continued until May 23, 
1868, when he died, aged fifty-six years. On that day the Execu- 
tive Committee met and adopted the following resolutions : 

"RESOLVED, that the members and officers of this company 
entertain a profound sense of the loss which in common with the 
community they have sustained in the death of their late President, 
Mr. Samuel S. Daggett, so long known for the purity of his private 
character and the honesty and integrity with which he discharged 
the responsible duties of President of this company with which his 
name has been honorably associated since the commencement of its 
business in this city; 

"RESOLVED, that the Secretary of the company transmit a 
copy of these proceedings to the family of the deceased, and at the 
same time tender to them the sincere sympathy of its members in the 
affliction with which they have been visited by a wise and merciful 
Providence; 

"RESOLVED, that as a token of our respect for the deceased, 
the company's office be closed on the day of his burial." 

A special meeting of the Trustees was immediately called to 
be held June 17, 1868, to fill the vacancy in the office of President 
and such other vacancies as might then exist in the Board or in 
any office of the company. John Plankinton of Milwaukee, was 
elected Trustee, but on the two ballots taken for President there 
was no choice, Lester Sexton receiving 14; S. D. Hastings 13 and 
A. W. Kellogg 1. These gentlemen were requested to retire 
from the room while the rest consulted, and on their return the 
election of President was postponed to the next annual meeting 
of the Trustees. 

A liberal ruling of the Executive Committee was made April 
27, 1868. Following is the statement of facts from the records : 

"Papers were presented in the case of Charles Standish of Cali- 
fornia, insured January 9, 1868, for $2,000. by policy No. 30169. 
Reported missing and supposed to have perished in the snow, or 
what is yet more probable, have wandered during the furious storm 
in which he was overtaken, over the river bank and been drowned, 
as one of his snow-shoes and the pole which he was known to have 
carried with him, were found in the water The sworn evidence of 



Change of Name and General Expansion 139 

parties engaged in searching for the unfortunate man appears so con- 
clusive that the committee voted to pay the loss, firmly believing that 
he is dead." 

Manifestly the officers of the company had not yet had ex- 
perience with those ingenious persons who soon learned to ex- 
periment with life insurance frauds ; and it may be well to add 
their confidence in this particular case was not shattered. 

Without attempting to write a contemporaneous history of life 
insurance in this volume, a record of the events of 1868 may 
properly be closed with a reference to the leading case of Paul 
vs. Virginia, reported in 8 Wallace, 168, and decided by the 
Supreme Court of the United States at the December 1868 term 
of that court, wherein the important doctrine was established 
that issuing a policy of life insurance is not a transaction of 
commerce. The decision has ever since kept insurance without 
the benefit of national supervision, and made possible the speckled 
legislation that has followed to hamper and harass companies 
from coast to coast. It is exceedingly regrettable that this vital 
question came up so early in the history of the jurisprudence of 
this country inasmuch as it is possible that at a later date changed 
conditions and enlarged views, might have prompted a different 
result. At any rate, had the decision been different, the whole 
history of the supervision and control of life insurance in the 
United States might have been radically changed. 

The company was now large enough to attract attention and 
the record of the first Trustees' meeting in 1869 shows that there 
was an incipient contest for office. 

It will be recalled that the Trustees were accus- 
tomed to convene just prior to the annual meeting 
and nominate Trustees. Accordingly they came to- 
gether January 12, 1869, and named all the men 
whose terms were about to expire, but when the votes were count- 
ed the next day, two of the old names were missing and new 
ones were added, those of S. S. Merrill, general manager of the 
Milwaukee railroad, and Heber Smith, a man destined to be prom- 
inently identified with the company. S. D. Hastings who had 
been growing in prominence was one of the defeated. 

This action had a material effect on the election of a President 
to succeed S. S. Daggett, deceased. Had Mr. Hastings been 



1869 



140 Change of Name and General Expansion 

elected a Trustee, he would quite probably have been a candidate 
for the office, his appointment as President pro tempore, already 
noted, indicating that fact. His defeat meant almost a clear field 
for Lester Sexton and he was elected on the first ballot, receiv- 
ing twenty out of the twenty-nine votes cast. Heber Smith, the 
new Trustee, was then elected Vice President by a sufficient vote, 
and a new administration was in charge of the company. Mr. 
Kellogg, Secretary, and Mr. Nash, Treasurer, still retained their 
positions. 

Lester Sexton, the new President, was born in Somers, Tol- 
land County, Connecticut, April 28, 1807; was reared on a farm 
and received a common-school education ; on attaining to his 
majority went to Hartford and entered the mercantile trade; in 
1837 went to New Orleans and engaged in dry goods business; 
located in Milwaukee in 1847 an d became a prominent merchant. 
Mr. Sexton was possessed of great energy and remarkable busi- 
ness capacity. Besides his mercantile business and his official con- 
nection with the company, he was Vice President of the Milwau- 
kee National bank and a prominent stockholder in the Gas com- 
pany. 

His advent to the executive office promised a prosperous ad- 
ministration but he died March 15, 1869 — two months after his 
election. 

Heber Smith, the new Vice President, was born at Bastard, 
Upper Canada, December 21, 181 7; settled in Watertown, Wis- 
consin, in 1845, engaging in the milling business ; served in the 
Wisconsin legislature of i860 and was at one time sheriff of 
Jefferson County; in 1863, became a general agent of the com- 
pany in Wisconsin and was elected Vice President January 13, 
1869, serving until January 28, 1874. Mr. Smith died at Salina, 
Kansas, July 14, 1888. 

The annual report of the Executive Committee presented at 
this meeting contains a proud reference to the first ten years of 
the company's growth, and the following pardonable statement : 
"Aiming to make it the company of the people, its managers have 
promptly adopted real improvements suggested by the growing 
intelligence of the age ; it having been the first, we believe, to 
make the first payment secure its proportion of a ten year policy, 
to make dividend additions non-forfeitable, the second to adopt 



Change of Name and General Expansion 141 

the contribution system of dividends, and among the first to make 
policies non-forfeiting; to take off the extra premium for insur- 
ance on the lives of women; to remove unnecessary restrictions 
upon travel and residence and to make popular endowment poli- 
cies, until the company stands today abreast or ahead of any 
other in its many provisions to secure equity and safety for all 
its members." 

At the meeting of the Executive Committee held January 18, 
1869, it was decided that the duties of the General Agent should 
be thereafter performed by the Vice President and the salary was 
fixed at $5,000 per annum. This continued to be the rule for 
many years and until the business increased to such an extent 
that separate offices were necessary. 

In February 1869, Joseph Lewis entered the service of J. W. 
Skinner, who then had charge of the Collection department of the 
company, doing the work under contract and hiring his own as- 
sistants. January 1, 1870, Mr. Lewis was assigned by the Secre- 
tary to help Mr. Stover, the bookkeeper, whose retirement soon 
thereafter gave the books to Mr. Lewis, who remained with the 
company until August 1873. He subsequently studied medicine 
and is now a practitioner in Milwaukee. 

Joseph Lewis probably gave to the company the unique dis- 
tinction of being the first institution to use the card-system. 

Dr. Lewis recently sent the compiler an interesting letter re- 
lating to his early connection with the company, in which he says : 

"During the time I was with the company I took up the work of 
writing up the loan note account, General Lynch having been trans- 
ferred to the actuarial department. I introduced the card-system 
and so far as I know, was the first to apply it to the keeping of 
general accounts. (Slips had however previously been used for 
minor purposes, as for instance, transient memorandums on hook 
files.) I was led to this by the fact that our old 'ticklers' were con- 
tinually in need of re-writing and that as the office force multiplied, 
reference to them increased and everybody was in everybody else's 
way! It then occurred to me that a system of bookkeeping in which 
every account had its separate 'book,' so to speak, would be of 
advantage; so I ruled off a sample card and presented it to the 
officers of the company, who speedily saw the benefit it would be to 
the company; and with the help of several of the clerks, we trans- 
ferred the policyholders' accounts to the cards as you now have them. 
(I think Mr. Hooley and Mr. Austin were the ones who took part 



142 Change of Name and General Expansion 

with me in the work.) I will say that General Gaylord advised me to 
have the system patented but I never did. The chief change I made 
in the 'general books' was in regard to the journal, in which I re- 
versed the sides, the items now appearing on the right side at that 
time being on the left, with no cash column." 

The system thus conceived and introduced by Dr. Lewis has 
been of great practical utility to the company. 

During the year 1869, the company had its first disturbing ex- 
perience with legislation. A bill had been introduced to impose 
a county and city tax on the property of the company in addition 
to the state tax already required, but this was so manifestly un- 
fair that it was ultimately defeated. A modification of the ex- 
isting taxation law was passed, however, which excepted the real 
estate of domestic companies from the old law, thereby leaving 
the subject of the taxation of such real estate for future legisla- 
tive action. (Chapter 181, Laws of 1869.) 

Another bill introduced at the same session provided that in 
case of an unsuccessful defence by an insurance company to a 
suit on a policy, the plaintiff's costs, disbursements and "other 
reasonable expenses" should be taxed against the defendant. 
This, too, appealed even to a majority of the legislators as going 
a step too far and it was not enacted. 

The legislature, however, passed chapter 93, Laws of 1869, 
approved March 5, 1869, requiring the company to furnish a copy 
of his application to each insured person and in complying with 
the requirements of the law, which has since become almost uni- 
versal, letter-press copies were furnished if the applicant had 
been good and thoughtful enough to use copying-ink, but if he 
had failed in this respect, hand copies were made, for many years. 
Finally, on October 6, 1891, a photographic process was in- 
stalled and an exact copy of the application in the fullest sense 
of the word, has since been attached to every policy issued. 
Policy No. 241,358 issued to H. D. McGuire of Portland, Ore- 
gon, bears the first photographic copy of application. The details 
of the plant which photographs the application, or anything else 
requiring photographic reproduction, were arranged by T. E. 
Hutchings who has been in the employ of the company since 1885, 
and he had charge of its installation. 

Outside legislation began to make itself felt as a factor in 



Change of Name and General Expansion 143 

the company's affairs about this time. On or about March 15, 
1869, information was received at the home office that the legis- 
lature of Alabama had just passed a law, that has since become 
a perennial favorite, requiring the company to deposit Alabama 
bonds with the State Treasurer of the state to protect Alabama 
policyholders. Believing this sort of legislation to be unwarranted 
— a view to which the officers have ever since consistently and 
persistently held — instructions were given to contest it in the 
courts of law in a friendly suit to be instituted for that purpose, 
but when a representative of the company visited Alabama, the 
questions at issue were settled without suit and without the pur- 
chase of the bonds. 

On the afternoon of March 12, 1869, occurred one of those 
tragic visitations that punctuate the history of all institutions 
whose experiences go back a number of years. President Sexton 
was stricken down to death without a moment's warning and 
while seemingly in good health. He had been at the office of the 
company as usual and had just finished his mid-day meal when 
he suffered a stroke of apoplexy, immediately becoming uncon- 
scious and so remaining until his death, Monday March 15, 1869. 

Coming, as it did, within two days of two months after he had 
been elected President, his demise was particularly untimely. 

Resolutions respecting his death were adopted by the Execu- 
tive Committee on March 19, 1869, as follows : 

"RESOLVED, by the Executive Committee of The Northwest- 
ern Mutual Life Insurance Company that we hear of the death of our 
President, Lester Sexton, Esq., with sincere sorrow; 

"RESOLVED, that in the death of Mr. Sexton this company 
has lost one of its staunchest supporters and earliest friends, and 
the city of Milwaukee a citizen known throughout the whole country 
as a leading merchant and business man whose commercial integrity 
inspired confidence, and whose enterprise in business kept pace with 
the unprecedented growth of the Northwest, with which he was fully 
identified in interest and sympathy; 

"RESOLVED, that we deeply sympathize with the family and 
relatives of the deceased in this severe dispensation of Providence; 

"RESOLVED, that the office of this company be closed and all 
business in its office be suspended during the day of the funeral." 

The minutes of the meeting of the Executive Committee of 
April 12, 1869, show that A. C. May had been declined as an 



144 Change of Name and General Expansion 

applicant for insurance by the Medical Director. Surely there 
is nothing in this simple entry to attract more than the merest 
attention and still, this bare statement meant much to all con- 
cerned, for A. C. May was the candidate for President of the 
same forces that had been back of the Hastings candidacy in 
January. 

Mr. May was afterwards accepted as a member and at the 
meeting of the Trustees of the company held April 14, 1869, was 
elected a Trustee. He failed, however, of election as President. 

There had been a well-defined and growing sentiment among 
the members of the board in favor of John H. Van Dyke, of Mil- 
waukee, for that office but he had steadfastly declined to be a 
candidate, until at a recess taken just before it was time to vote 
on a successor to Mr. Sexton, his friends again pressed him to 
allow his name to be presented and he finally consented. 

He was chosen on the first ballot. 

Here, then, was a trained, able man brought to the head of 
the company — one who added to inherent traits, the finish of 
education and the breadth of experience ; a man of the times, 
but in advance of them. 

Mr. Van Dyke gave to the company as its chief executive of- 
ficer the benefit of his talents until 1874, and on retiring left a 
splendid record. He was subsequently re-elected a Trustee of 
the company ; served for a time as special Counsel of the Loan de- 
partment and was a member of the Executive Committee for 
years. He still lives in Milwaukee, moving into the shadow 
through an ideal life — cultured, artistic and charitable. 

John Henry Van Dyke was born of Dutch and Scotch an- 
cestry, in Mercersburg, Franklin County, Pennsylvania, October 
17, 1823; graduated at eighteen from Marshall College; immedi- 
ately moved to Detroit, Michigan, and studied law with his 
brother, James A. Van Dyke ; was admitted to the bar in April 
1846, and located in Milwaukee the same month. His law busi- 
ness was always successful and his general business eminently so. 

Though successful as a lawyer and business man, Mr. Van 
Dyke has taken time to thoroughly enjoy the refinements of life. 
He is a noted art connoisseur and his collection is nationally 
known. He was the first president of a literary society that de- 
veloped the Milwaukee Library; was a member of the board and 



Change of Name and General Expansion 145 

for some time has been president of the board of visitors of the 
Milwaukee Hospital; interested in the board of the Orphan 
Asylum of that city ; a trustee of the old Milwaukee Female Col- 
lege; a trustee of Lawrence University, Appleton, Wisconsin, 
and a trustee of the Layton Art Gallery. 

April 22, 1869, ought to go down in the history of the com- 
pany as the day on which its largest loan, up to that time, was 
voted. This was one of $100,000 to the Young Men's Christian 
Association of Chicago, Illinois, negotiated by J. V. Farwell in 
person and a double increase of the $50,000 already held by the 
company on the property. In connection with this loan it was 
voted to deposit the sum of $20,000 in the Union National Bank 
of Chicago — the first outside deposit ever made by the company 
so far as the records show. 

New premium rates established by the company went into effect 
May 1, 1869, and in connection with their promulgation and use, 
a brochure of thirty-nine pages on life insurance was issued, 
which for contents and method of treatment make it a little 
classic. 

At or about the same time, an agent's rate book copyrighted 
by George H. Rountree was issued, fully explaining all changes 
and methods in respect of applications, policies, dividends and the 
like, up to the date of issue. This new rate book and the pam- 
phlet which was entitled "Life" were so well thought of by the 
Agents' Association that at the meeting held in April 1870, a 
resolution was proposed requesting the Executive Committee to 
make this one of the principal canvassing documents of the com- 
pany in the place of the manual theretofore used. 

As early as 1869, a somewhat elaborate office organization 
was planned, composed of officers and committees, to each of 
whom special duties were assigned, which organization was too 
cumbersome and full of minutiae, however, to be practical, but 
the duties then specifically prescribed still remain within the 
province of the officers named, although, naturally, the increased 
business has materially enlarged the scope of the duties of all 
officers. 

Of general interest is the fact that on May 1, 1869, a com- 
mittee resolved that inasmuch as New York was a special field in 
which it was desirable to work and which required experienced 



146 Change of Name and General Expansion 

and successful agents, a contract be made with H. M. and James 
Munsell, the former a general agent for Massachusetts, to open 
up the field ; and thus simply, but bravely, was the foundation 
laid for the invasion of the east — with its great life insurance 
Goliaths — by the brave young David from out the budding west. 
It required faith, confidence and that specially condensed 
American characteristic perhaps inelegantly known as "nerve" to 
pass a resolution of that description, but the company's subse- 
quent splendid New York business, founded upon merit, has long 
since justified the action. 





x^ — 



z> 



Five Years of Eventful History 



1870 



NO five years in the history of The Northwestern Mutual 
Life Insurance Company were more important than those 
included between 1870 and 1875 ; indeed, the historian 
who views the whole experience of the company with something 
more than mere passing interest, justifies himself in writing that 
this half-decade was the crucial period in the life of the organ- 
ization. 

The new year, 1870, opened with an annual 
statement of which officers and members were 
proud. The company had on the first day of Janu- 
ary a total of 31,807 policies in force covering insurance to the 
amount of $59,619,267.52, with assets of $6,757,532.36. Besides, 
it had taken a prominent place in the insurance world and was 
already one of the foremost companies of the times. 

When the Trustees met in annual session on January 12, 1870, 
the merest suspicion of a contest over the selection of Trustees 
appeared and a weak minority developed to oppose some of the 
administration measures. The old officers were all re-elected but 
when a small minority objected to the salary of the President 
being put at a figure which would engage the services of Mr. 
Van Dyke, not compensate him, he promptly resigned and was 
as promptly re-elected. 

Early in 1870 the company considered the propriety of adopt- 
ing a higher standard of policy reserve than that previously em- 
ployed, and Elizur Wright was consulted. He came to the home 
office; spent several days examining into the company's condi- 
tion and finally advised in favor of the then existing Massachu- 
setts standard, the Actuaries' Table of Mortality and four per 
cent interest. 

The company coincided with his views and thereupon the 
Executive Committee, on March 17, 1870, adopted the following 
resolution : 

"Resolved, that The Northwestern Mutual Life Insurance Com- 

149 



150 Five Years of Eventful History 

pany adopt for its premium reserve * * * * the legal standard 
of the State of Massachusetts, namely, the Combined Experience or 
Actuaries' rate of Mortality, at 4 per cent interest." 

In increasing the company reserve to the new standard, the 
surplus remaining was found insufficient for payment of a divi- 
dend and so the dividend otherwise payable for 1870 was omitted. 

Prof. Wright strongly commended the action of the commit- 
tee on the ground that it best served the interests of policyhold- 
ers. He did not contend that the business might not be success- 
fully conducted under the New York rule permitting a lower rate 
of reserve, but maintained that any company should not be satis- 
fied with a bare sufficiency of reserve. "It should," he wrote, 
"keep a barrier of reserve between it and future insolvency, ever 
on the increase and as impregnable as Gibraltar." 

At the Trustees' meeting of April 13, 1870, Secretary Kellogg 
resigned, after eleven years' service, to take the position of Vice 
President of the Republic Life Insurance company, of Chicago, 
which was successor to the Great Western Mutual Life Insurance 
company. The company subsequently met reverses and Mr. Kel- 
logg went into business for himself. 

Augustus Gaylord was unanimously elected Secretary at a 
meeting of the Trustees held July 13, 1870. 

Bearing on important events to come, reference must be 
made to an appealing communication to the Trustees at this 
meeting by Vice President and General Agent Smith concerning 
his salary. He called attention to the compensation paid by 
other companies for similar services and wrote: 

"I believe that the funds of the company are sacred trusts, and 
not to be squandered, but at the same time I believe that the North- 
western is able to do by its manager as well as any other company in 
the land and that the true interests of the company will be best pro- 
moted by paying the men who have the burden of the labor to per- 
form such a compensation as will give them to feel that they may 
unreservedly consecrate themselves to their work and that their 
labors are being appreciated. 

"Should the trustees after full deliberation fix my compensa- 
tion at $7,000 per year I should feel that that matter is settled, and 
the company entitled to my best efforts, but should they place it at 
any lower figure, I should be compelled to regard my position as un- 
settled and that I am at liberty to receive any more favorable over- 
tures." 



Five Years of Eventful History 151 

A special committee to whom this letter was referred recom- 
mended that Mr. Smith resign as Vice President and continue as 
General Agent under a salary of $6,000 per annum, but when 
this recommendation was disclosed to Mr. Smith, he resigned 
both places. Later in the meeting, however, the rough places 
were smoothed and he continued to act in both capacities until 
a later date. 

Having passed successfully through the early events of 1870, 
nothing serious obtruded itself on the company the rest of the 
year. An examination of the records discloses the interesting 
fact that money was being loaned in large sums at ten per cent ; 
that the time for holding annual meetings of Trusteees was 
changed to the last Wednesday in January and that questions 
incidental to the healthy growth of the company were constantly 
arising. 

The availability of life insurance as a financial convenience 
was demonstrated, by a letter received August 27, 1870, which 
proposed that the company should retain in its hands the proceeds 
of a policy when it matured by the death of the insured until the 
beneficiary children should attain to the age of twenty-one 
years, and inquiring what rate of interest the company would 
allow on the fund. The business committee voted to issue the 
policy payable to the children at twenty-one, allowing five per 
centum per annum from the date of the death of assured. 

The year 1871 began with 35,107 policies in force insuring 
$65,186,706.98 and showed assets amounting to $8,991,766.48. 

When the Trustees of the company met January 24, 1871, 
they were confronted with one of those troublesome conditions 
that happily have come to the company but a few times in its 
career. The adoption of the new reserve rate had 
made the General Agents and others, apprehensive 
of the actuarial system in the office and, justly or 
not, they openly showed dissatisfaction at the 
retention of the incumbent officer. The Trustees appointed a 
committee to examine the work of the Actuary and to make 
such recommendations in regard to the office as they might deem 
for the best interests of the company. This committee reported 
at the annual meeting of the Board that they had been unable to 
go into such examination as was satisfactory, but said that dis- 



1871 



152 Five Years of Eventful History 

satisfaction manifestly existed. They recommended the em- 
ployment of an experienced actuary to go over the work and 
make a scientific report. The committee stated that nothing 
had transpired with reference to the office that could possibly be 
construed into any lack of confidence in the personal character of 
the Actuary for rectitude and integrity. 

Further consideration of the subject was left to the Executive 
Committee and on April 13, 1871, the President had an interview 
with Emory McClintock looking to his employment as Actuary. 
May 29, 1871, Mr. McClintock was duly appointed by the Execu- 
tive Committee and soon thereafter entered upon the duties of the 
office. He remained with the company, giving it the benefit of 
his splendid ability, until January 2, 1889, when he resigned to 
accept a similar position with the Mutual Life Insurance company 
of New York, of which he is now Vice President and Actuary. 

Mr. McClintock is the son of the late Dr. John McClintock, 
president of a theological seminary at Madison, New Jersey; 
graduated at Columbia College, New York; completed his educa- 
tion at Gottingen, Germany ; subsequently appointed American 
Consul at Bradford, Yorkshire, England, serving three years ; 
joined the Asbury Life, organized in 1868, leaving it to come to 
the Northwestern, where he remained eighteen years. 

It is pertinent to note here that at the Trustees' meeting held 
January 25, 1871, Charles F. Ilsley and John A. Dutcher were 
not re-elected and that two men who afterward became officers 
of the company were : O. E. Britt, who was Vice President from 
January 28, 1874, to January 26, 1876, and Matthew Keenan 
who succeeded him as Vice President and remained as such until 
July 18, 1894, when on account of failing health, he declined 
re-election. 

Mr. Keenan was another of the strong men of the company. 
He was born at Manlius, Onondaga County, New York, January 
5, 1825; came to Milwaukee with his parents in 1837; engaged 
successfully in various business ventures and, step by step, 
climbed to the front as one of the city's prominent men. He 
was possessed of great ability and energy, and his integrity was 
unquestioned. Mr. Keenan was elected a Trustee in 1871 and 
was appointed Superintendent of Agencies January 31, 1874. In 
his official capacities he had to do at different times with the 



Five Years of Eventful History 153 

agency and investment features of the company's business, to 
both of which he brought great earnestness of purpose and 
marked ability. Mr. Keenan died August 19, 1898. 

At this time, also, Edwin Hyde, of Milwaukee, was elected 
Trustee and has so remained during the thirty-seven years that 
have elapsed. Mr. Hyde enjoys the distinction of having served 
longer than any other living Trustee except President Palmer. 

At a meeting held July 25, 1871, the Executive Committee 
authorized the President to withdraw the United States regis- 
tered bonds deposited with the State Treasurer of Wisconsin as 
required by law and substitute therefor the amount in bonds and 
mortgages held by the company. At the same time, the President 
was authorized to deposit with the proper officer in the Dominion 
of Canada, bonds to the amount of $100,000 for the purpose of 
enabling the company to get a license to transact business in the 
Dominion. On August 28, 1871, a general agency of the com- 
pany in Canada was established at Brockville, Ontario, and 
William A. Schofield was appointed agent and attorney upon 
whom process could be served. 

Although doing a fine business there, the company withdrew 
March 1, 1878, because the Canadian law was changed so as to 
require a deposit of securities with the proper officers of the 
Dominion for the exclusive benefit and security of policyholders 
of the Dominion. It was thought a mutual company could not 
properly comply with a law which provided for a special security 
for the benefit of a particular class or body of policyholders. 
So tenaciously have the officers of the company since maintained 
this position that it has publicly announced on other occasions 
that the company simply could not comply with such a law. 

Officers, agents and employees of the Northwestern will be 
interested to note that the salary adjustment at the Executive 
Committee meeting of November 13, 1871, embraced the names 
of four who subsequently became intimately associated with the 
home office, namely, Julius N. Proeschel, a man of great execu- 
tive ability, head of the Claim department for thirty-six years, 
when in August 1907 advanced age and a desire for rest 
prompted his resignation ; C. A. Loveland, now Actuary ; J. O. 
Martin, present head bookkeeper, and C. H. Watson who served 
diligently in a clerical capacity, but with increasing responsibili- 



154 



Five Years of Event fid History 




C. H. Watson 



ties, until July 16, 1890, when he was elected Assistant Secretary. 
He was promoted to Secretary July 19, 1905, holding that office 
until April 14, 1906, when he died. Mr. Watson was born at 

Elizabeth, New Jersey, April 22, 
1843, an d removed with his pa- 
rents to Milwaukee in 1845, was 
educated in the public schools and 
at college and was admitted to the 
bar. He gave thirty-five years of 
active and able service to the com- 
pany in the several capacities in 
which he was called upon to act. 
Most readers of this history 
know of the great Chicago fire 
that started October 9, 1871, and 
involved millions of dollars of 
damage. Notwithstanding the 
fact that the company was doing 
a large loan business, luckily it had 
but eight loans upon property 
within the burned district and these were made in 1868 and 
1869, before the expansion of landed values in that city, and 
the then land values without the buildings were largely in excess 
of the loans when made. The company did not lose a dollar by 
the Chicago fire either on account of a real estate loan or death 
losses. 

The year 1871 closed with a flutter of excitement over an 
occurrence then magnified into a sensational matter, but now 
viewed with comparative complacency by the surviving actors in 
the drama. 

On the morning of December 21, 1871, an ex-Trustee of the 
company and another person soon to become an ex-Trustee, pre- 
sented a request to the Executive Committee either for a list of 
the policyholders of the company or for permission to have a list 
made from the books. At a meeting of the Executive Commit- 
tee held that afternoon it developed that a young clerk employed 
by the company had been detected in removing two of the policy 
registers from the office and that names were being obtained 
therefrom surreptitiously for the purpose of circularizing the 



Five Years of Eventful History 155 

policyholders against the then existing management. Being ar- 
rested, he disclosed the names of the persons implicated. 

A meeting of the Trustees resident in Milwaukee held that 
evening came to the conclusion that it would be unwise and 
prejudicial to the best interests of the company to make public 
the names of its policyholders. This has been the consistent rule 
of the company ever since. 

The men back of the rebellious movement persisted in their 
efforts to discredit the management and sent circulars broadcast 
manifestly for the purpose of influencing the approaching elec- 
tion of Trustees. 

There was much interest taken in the affair at the home office 
and circulars and cartoons were distributed in behalf of both 
parties, but so effectually has time obliterated the memory of 
those bellic days that most of the details of the campaign have 
been forgotten. 

No person interested in the company in any way could fail to 
get genuine satisfaction out of the annual report submitted by 
the Executive Committee on January 31, 1872. It showed con- 
tinued prosperity and substantial progress with 
reduced expenditures in management, and fully 
justified confidence and support. 

There were issued during the year 1871, a total 
of 5,662 policies amounting to $12,694,852, which brought the 
aggregate outstanding policies of the company to 34,349 covering 
$62,425,187 of insurance. The total assets were $10,658,169.80. 
It may be pertinently added, too, that the receipts from interest 
on investments in 1871 largely exceeded the entire death losses 
during that period. 

The annual Trustees' meeting held January 31, 1872, was 
watched with great anxiety by those personally connected with 
or interested in the company. The administration ticket was 
elected by a vote of 11,000 to 600 and the new Trustees took 
their places on the Board. Among these was Hon. David J. 
Brewer, of Leavenworth, Kansas, who was appointed an associ- 
ate justice of the Supreme Court of the United States in 1890. 
Justice Brewer is still a Trustee of the company and his appoint- 
ment as justice never interfered with his attendance upon the 
annual meetings of the Trustees of the company, few of which 



1872 



156 Five Years of Eventful History 

Judge Brewer has missed in his thirty-six years of service on the 
Board. 

At this meeting, the resignations of A. C. May and J. C. 
Spencer as Trustees were filed and accepted. 

With a view to stimulate the work of agents in aid of busi- 
ness the Trustees at their meeting of January 31, 1872, requested 
the Executive Committee of the company to act as a committee 
of conference with the agents, resulting in resolutions being 
adopted February 26, 1872, as follows: 

"RESOLVED, that in order to create a spirit of well directed 
emulation throughout the agencies of the company, whereby to in- 
crease the percentage of new business for the year, the officers be 
and hereby are authorized to offer four sets of prizes to be competed 
for by agents." 

A year later, viewing the practical working of this resolution, 
Vice President Smith stated that the plan had been instrumental 
in increasing business materially and that because of the incen- 
tive created, agents worked harder and procured results on 
reduced expenditure of money, thereby justifying the plan from 
an economical point of view. Several years after that, however, 
legislators looked upon the idea differently and in many states 
prohibited the practice. 

At a meeting of the Executive Committee held on March 18, 
1872, James W. Skinner was elected Assistant Secretary. More 
extended reference to Mr. Skinner will be made in later pages of 
this work. 

For many years prior to 1872 the company permitted its mem- 
bers to apply dividends to the purchase of temporary additional 
insurance for a single year. In 1872, notice was given that when 
one thousand members should join in applying their dividend for 
that purpose, a separate account would be made of the actual 
cost of such temporary insurance, making of that class a small 
mutual company, so to speak. This plan would have afforded the 
cheapest possible form of insurance but it did not prove popular, 
not more than a total of two hundred persons accepting it. Pos- 
sibly the reasons for this lack of success were, the fluctuating 
amount of insurance secured, the fact that the extra insurance 
did not begin until two years after the issue of the policy and 
that the premium was required to be paid in full every year. 



Five Years of Eventful History 157 

These difficulties were all obviated by the Addition Plan then 
perfected and introduced. 

If an examiner into the records and files of the Northwestern 
should be asked to name the single thing that was paramount in 
the successful building up of the great institution it has come 
to be, the chances are he would reply : Attention to details. 
Nothing which really appertained to or affected the interests of 
the company seemed too insignificant for official attention and 
the earnestness which has been continuously applied to all the 
company's affairs has been a marked characteristic. A diverting 
example of this may be found in a letter dated September 25, 
1872, from the Vice President to an agent in Georgia who, call- 
ing attention to the nicely furnished offices of his competitors, 
implored an appropriation for like purposes. After assuring 
the applicant that the company always stood ready to aid agents 
who had proven their ability, he wrote that any agent just begin- 
ning can succeed in working up quite a business without any 
office, whatever. "But," he continued, "the way to do this is to 
start out and talk insurance, being first fully posted on the sub- 
ject. By and by, when success is assured, the company always 
stands by its working agents and appreciates their value in pro- 
portion to the work they may do. No doubt the companies you 
have mentioned have started their agents as you intimate and 
if you will look at the expense ratios of those companies you 
will see how favorably ( ?) they compare with that of ours, and 
in this relation we may add that our low ratio of expense is 
brought about by pursuing the conservative course and by avoid- 
ing all extravagances of any nature. In a mutual company like 
the Northwestern, we do not believe the officers have any right 
to expend the funds of the company in expensive experiments; 
and by adhering strictly to this idea we have been able to reduce 
the expenses of the company to the low figures shown in the 
reports. We should be glad, indeed, if we could coincide with 
your views on this matter and it would give us great pleasure to 
know that you had a pleasant and well-fitted office, but we do not 
believe (and the best authorities agree with us in this) that an 
office ever directly influenced a single policy, and any agent who 
imagines that the existence of his office will attract insurers, is as 
likely to find his hopes realized as would a modern army who 



158 Five Years of Eventful History 

expected to take a fortress by parading in front of it. We have 
been somewhat lengthy in giving you our views on the matter 
and will now say if you will furnish us with evidences of your 
ability (which we think you possess) to write insurance, by for- 
warding a good line of applications, we will do all we can to 
assist you in forwarding your work, but we appeal to your own 
judgment if we should be expected to go to several hundred 
dollars expense in the uncertainty as it now stands?" 

This letter is typical of the company. Hundreds voicing the 
same careful conservatism may be found on the books. Each 
unconsciously sounds the key-note of company success. 

One finds in the early years of life insurance in this country 
a diverting line of advertisements, and one of the most popular 
methods of the times was the acrostic. Most companies were ad- 
dicted to the use of this archaic form to attract attention and the 
Northwestern, particularly, got the habit. 

In September, 1872, George H. Rountree, Superintendent of 
the Supply department of the company, issued a paper called The 
Pantograph, dedicated to the advancement of the great industrial 
enterprises of the west and hopeful of its mission. It did not 
last long but the first issue contained the subjoined acrostic, the 
authorship of which has been attributed to editor Rountree, him- 
self. 

Some, kindly disposed, have said it is "pretty good." The 
reader will judge : 

"Not what men gain but what they save 
O! this the secret is of wealth; 
Read, ponder well, for oft the grave 
Takes all the future years by stealth. 
He then is wise who lays up store, 
Who harvests while the day is bright, 
Ever the future conning o'er — 
Sad future which comes as the night 
To the dear ones for whom he lives, 
Each one of whom his heart holds dear; 
Ready, for them his life he gives 
Nor takes his counsel of his fear. 

"Men read the future in the past; 
Urged by the ghastly wrecks they see, 



Five Years of Eventful History 159 

The fortunes spent — the misery- 
Unspeakable, and that must last 
Ah! well it is from out the strife 
'Life, Life!' they cry. 'Insure the life!' 

"Lo! then the hearthstone still keeps bright 
Its store of food the table bears; 
Fed, warmed and clothed they know no night 
Engulfing with its flood of cares. 

"Inquiring men would seek the best, 
Nor place their hopes on broken reeds; 
So let their minds be set at rest 
Upon what's suited to their needs, 
Read, then, the letters which we pen, 
And let the same be clothed with power; 
NORTHWESTERN! will suit all men 
Coming to seek a certain dower; 
Enduring name, to Time's last hour. 

"Combining every feature known 
Of what is liberal, true and just; 
Men wonder not that it has grown 
Powerful and popular, and trust 
All of their future to its care 
Nor doubt the glory it will wear 
Years hence, when they are turned to dust." 

The annual statement issued by the Executive Committee on 
January 20, 1873, showed that the preceding year had been a 
gaining one for the company, 5,772 new policies, representing 
$13,196,279 insurance, having been issued, swelling 
the outstanding total to nearly $65,000,000. The 
assets of the company were $12,434,527.71. 

At a meeting of the Executive Committee held 
January 18, 1873, attention was called to the famous Colvo- 
coresses case and on that date the company became one of an 
association to investigate it. This case is one of the famous 
insurance mysteries. 

Just about eleven o'clock on the night of June 3, 1872, Cap- 
tain George M. Colvocoresses, a retired naval officer, was discov- 
ered in a dying condition on the streets of Bridgeport, Connecti- 
cut, having been shot. He was a resident of Litchfield and sub- 



1873 



160 Five Years of Eventful History 

sequent developments showed that he was on his way from his 
home to New York when he received what proved to be his 
death wound. The peculiar circumstances surrounding his 
demise led to an investigation. The investigation showed that 
on the first day of January 1872, Captain Colvocoresses had in- 
surance to the amount of $19,000 on his life, divided among 
three companies. About this time an insurance broker of New 
York became interested in the Captain and soon thereafter policies 
were issued on his life in twenty different companies for an ag- 
gregate of $179,500, which with the $19,000 mentioned, made a 
total of $198,500, the greater portion of which was taken in four 
months or less. Among the first policies issued, after the broker 
had Captain Colvocoresses under his influence, was No. 65,371 
in the Northwestern, for $10,000, issued January 22, 1872, or four 
months and twelve days before his death. 

The private life and acts of the Captain, with the circum- 
stances surrounding his death, indicated suicide and a deliberate 
intent on the part of the insured to defraud the insurance com- 
panies. Other circumstances tended to combat this theory, for 
while the Captain had taken out, seemingly, more life insurance 
than he could pay for, his income as a retired naval officer was 
sufficient for living purposes ; he was not known to have any 
enemies ; the medical examinations for his insurance showed he 
was in good health and his domestic relations were said to be 
happy. 

On the other hand it was shown that he hardly had means 
enough to carry the policies and besides had, seemingly, mis- 
represented his condition. 

At any rate, the case attracted widespread attention and the 
following companies formed themselves into an association to con- 
test payment of their policies: The Manhattan Life Insurance 
Company; the Mutual Life of New York; the Commonwealth 
of New York; the Connecticut Mutual; the Berkshire, of Pitts- 
field, Massachusetts ; Charter Oak ; Phoenix Mutual ; John Han- 
cock Mutual; the Mutual Benefit; the Atlantic Mutual; the 
North America Life, and the Northwestern. 

A fund was raised for investigation, and detectives and other 
agents were set to work on the details of the case. After a time, 
the Phoenix was sued, but before the case came to trial, realizing 



Five Years of Eventful History 161 

that the expense of investigation and litigation, if continued, 
would soon amount to more than the executor of Captain Col- 
vocoresses's will would accept in settlement, the companies agreed 
to pay fifty cents on the dollar, and thus the case came to an end. 

Willard Merrill was elected Secretary of the company on Jan- 
uary 29, 1873, and immediately began an official connection with 
the Northwestern that only terminated by his declination in 1905 
to accept further office on account of prolonged ill-health. 

Mr. Merrill was a lawyer by profession but fate directed his 
way to the Northwestern where he may have missed that fame 
which legal and forensic ability would probably have brought him, 
but where he made a success that is impressed upon the minds of 
thousands of agents and policyholders who came in contact with 
him, and stands clearly out in the growth of the company to 
which he contributed as largely as any other man. 

Mr. Merrill was born in Rome, New York, January 16, 1831, 
and was admitted to the bar in 1856. He immediately proceeded 
west and settled at Prairie du Chien, Wisconsin, remaining there 
until i860, when he removed to Janesville, and became a law 
partner of the late J. B. Cassoday, afterwards Chief Justice of 
the Supreme Court of Wisconsin. It was then that he became 
interested in the Northwestern and occupied leisure hours solicit- 
ing members for it with great success. When the position of 
Secretary was offered him, he felt that he had received a call 
and accepted. He served as Secretary until the office of Second 
Vice President was created January 28, 1885, to which he was 
elected, being promoted to the office of Vice President July 18, 
1894. His failing health caused him to forego the honor of fur- 
ther election to office in July 1905 and he died at Pasadena, Cali- 
fornia, August 8, 1905. 

Mr. Merrill was essentially an insurance man and knew how 
to get business. By virtue of his office, Superintendent of 
Agencies, he brought to the work the system of a trained lawyer 
and the business judgment of an experienced layman. To both he 
added a personality that made his agents enthusiastic, tenacious 
and loyal. It may be said of him that his department produced 
the business upon which the administrative talents of others were 
exercised and is therefore, entitled to co-equal praise in the up- 
building of the Northwestern. It is written of him in the records 



162 Five Years of Eventful History 

of the company : "Mr. Merrill has * * * served the company 
as an officer for over thirty-two years. His work has been of 
great value to the company. He was faithful to every duty, just to 
every man. He was firm in the discharge of duty, but always 
kind in enforcing his authority. Thus he gained not only the 
respect and high regard but the warm affection also of his as- 
sociates and subordinates. The Executive Committee makes this 
record in token of its appreciation of his distinguished worth." 

At a meeting of the Trustees of the company held January 29, 
1873, several matters of importance were considered, among 
which were resolutions defining the exact powers and duties of 
the Vice President and the Actuary, granting to the former au- 
thority to act fully as President whenever that officer was absent 
or unable to discharge the duties of his office; specially defining 
the duties of the Actuary, and a committee from the agents sug- 
gested a change from January to July in the time of holding the 
annual meeting of the company. 

About this time, however, the most important feature of of- 
ficial consideration was the investment side of the business. The 
receipts had attained to large proportions and their productive 
investment called for some definite system. Thoroughly character- 
istic of the Northwestern idea, was the manner in which the sub- 
ject was considered. Every detail was threshed over time and 
time again, and there were naturally many differences of opinion. 
The freedom with which these were expressed openly in meet- 
ings and through formal resolutions introduced, shows the care- 
fulness and conservatism of officers. It also shows that there 
was not one person nor set of persons arbitrarily deciding busi- 
ness policies for the Northwestern — that every official had the 
right to speak and be heard, a tolerance of opinion that has always 
been practiced in company affairs. 

The main difference of opinion, however, arose over the pro- 
posed policy to make the loan and life end of the business de- 
pendent upon each other. There were those in the Board of Trus- 
tees and among the official force who thought these two branches 
of the work, while separate and distinct in personal character, 
were so naturally associated as to be mutually helpful and they 
proposed to make them so. Others deemed it best to make them 
independent and thus the friendly issue was joined. 




YfiiU*^ ynurrM. 



Five Years of Eventful History 165 

For example, at the meeting of the Trustees held January 31, 
1872, a resolution had been introduced to the effect that the funds 
of the company ought to be loaned in the states from which they 
were received, as far as practicable, provided satisfactory secur- 
ity was given, and that applicants should insure their own lives or 
the lives of others in the company for an amount equal at least to 
the amount of the loan, keeping such insurance in force during the 
life of the loan. At the meeting of January 29, 1873, a resolution 
was offered providing that the funds ought to be loaned at the 
uniform rate of ten per centum per annum and that while keep- 
ing in view the character and sufficiency of securities, the funds 
ought to be loaned in such amounts and localities as would bring 
the greatest amount of insurance, paying due regard to the rights 
of the existing members of the company and, as such, contrib- 
utors to its funds. 

The underlying idea, it will be noted, was to make the in- 
vestments produce insurance, but the Trustees and other officers 
were hardly ready to declare a system of compulsory insurance 
as a condition precedent to loans and neither of the resolutions 
noted was adopted. 

The subject was revived at a meeting of the Trustees held 
July 9, 1873, by a letter from the Vice President, a member of 
the Executive Committee, in which he said that inasmuch as the 
others of the committee differed from him as to the method of 
making loans he acceded to their ideas, but desired to be relieved 
of future responsibility on that account. The Vice President was 
an insurance man, primarily, and he wanted to make every fea- 
ture of the business produce insurance results. He thought every 
loan applicant should be a member of the company. The rest of 
the Executive Committee were willing to place money at ten per 
centum per annum on gilt-edged security disregarding life insur- 
ance and the attendant necessity of a physical examination. 

The general subject engrossed the attention of the Trustees at 
this meeting, and resulted in a resolution being presented to the 
effect that the funds of the company ought to be loaned in the 
western states at a uniform rate of ten per centum per annum, 
but that if the legal rate in any desirable locality were less, the 
funds might also be loaned there ; but so careful were the Trustees 
that they deferred action until the January 1874 meeting when a 



1 66 Five Years of Eventful History 

committee of five was appointed to examine into all features of 
the loan business and report recommendations. 

This committee reported January 28, 1874, that the Executive 
Committee should be left free to exercise its best judgment in re- 
gard to the loans made and the rates of interest to be charged. 
It should be governed by the financial condition of the country 
and the amount of loanable funds to be invested. 

The committee discontinued the policy of seeking high rates 
of interest by investments in small amounts in out-of-the-way 
places which might not be available in cases of emergency; and 
considered the linking of life insurance with loans of very doubt- 
ful advisability. In fine, it recommended immediate investment 
of the sum of $100,000 in government bonds and as soon as the 
funds would justify it, without interfering too largely with the 
usual loans on real estate, to invest the further sum of $150,000, 
making an aggregate of $250,000 in government bonds, believing 
this course to be necessary to guard against the result of a panic 
such as was experienced in the autumn of '73, and to provide 
available means to pay any extraordinary demands. 

Later experience has proven the wisdom of this course. 

The year 1873 will be remembered as one of industrial depres- 
sion and commercial disaster, but the climax of the panic did not 
come until so late that the business of the Northwestern was not 
vitally injured by it, although undoubtedly affected. 
However, all departments showed material gains 
over the business of 1872. 

During 1873, 4,660 new policies were issued 
covering risks to the amount of $11,061,361, and on January 1, 
1874 there were 35,226 policies in force, the total amount at risk 
being $64,692,003. The assets of the company increased $1,659,- 
051.45 in 1873, reaching a total of $14,093,579.16, and the amount 
loaned on bonds and mortgages was $7,986,335.38. The receipts 
from interest alone were more than a quarter of a million dollars 
in excess of the death losses in 1873. 

The year 1874 was a momentous one in the history of the 
Northwestern and important incidents developed early. The 
agents had not yet fully learned that there was an inseparable 
community of interest between themselves and the officers and 
some of them were led into an attempt to change the existing 



1874 



Five Years of Eventful History 167 

order of things. They had hopes of controlling the election 
of 1874 and purposed to establish a new administration. The 
program was carried out in part. When the election of Trustees 
took place on January 28, 1874, President Van Dyke was not 
chosen and consequently could not be re-elected President, but 
the plans of the agents failed to go further, for Henry L. Palmer 
was elected President and O. E. Britt, Vice President. The re- 
tiring Vice President, Heber Smith, remained as a Trustee until 
November 23, when he resigned. 

Henry L. Palmer, the newly elected President, became a Trus- 
tee December 18, 1858, less than one month after its organization. 
From that time until his presidential election he had been continu- 
ously Counsel for the company and a member of its Executive 
Committee. 

Henry L. Palmer was born in Wayne County, Pennsylvania, 
October 18, 1819; received a common school education; went 
to live in West Troy, New York, in 1836; was admitted to the 
bar; located in Milwaukee in 1849, practicing law until elected 
probate judge of Milwaukee County in 1873, which office he re- 
signed on being elected President; in the meantime he had been 
president of the school board, city attorney and served several 
terms in both branches of the Wisconsin state legislature. He is 
still President of the company. 

Judge Palmer has been prominent in Masonic circles for many 
years. During his connection with the order he has at different 
times been the presiding officer in all the different branches of 
Masonry. In 1879 he was chosen Sovereign Grand Commander 
of the Supreme Council of the 33 A. \ A. \ S. \ Rite for the 
Northern Jurisdiction of the United States and he has held that 
position continuously since that time and is still its presiding of- 
ficer. 

Judge Palmer is also a member of the Milwaukee Club, the 
Craftsman Club of New York, and the Iroquois Club of Chicago. 

It would be interesting to readers of this volume were an 
estimate of the character and services of Judge Palmer here pre- 
sented, but official instructions confine comments to the limits 
noted. 

A glance backward in this volume, however, will show that 
on the first day of the year in which Judge Palmer was elected 



168 Five Years of Eventful History 

President, the company had outstanding insurance in force to the 
amount of $64,692,003 ; its income in the preceding year was 
$3,906,252.13; the total amount loaned on bonds and mortgages 
was $7,986,335.38 and the total assets were $14,093,579.16. 

A glance forward will show that on the first day of January 
1908, covering an administration of thirty-four years, the out- 
standing insurance in force was $881,563,592; the company's in- 
come in the preceding year was $43,642,590.68; the total amount 
loaned on bonds and mortgages was $121,740,637.11 and the total 
assets were $232,819,246.07. 

Oren E. Britt, the new Vice President, was born in Medina, 
Orleans County, New York, October 12, 1826; settled in Mil- 
waukee in 1850, engaging in grain business; was a charter mem- 
ber of the Milwaukee Chamber of Commerce; from 1869 to 1877 
was general freight agent of the Chicago, Milwaukee and St. Paul 
Railway company, and from 1880 to 1887, consulting freight 
agent; joined commission firm of E. P. Bacon & Company in 
1877, but retired in 1880; was severely injured in Ashtabula dis- 
aster; left Milwaukee in 1888, moving to Morristown, New Jer- 
sey, where he died March 21, 1901. 

John H. Van Dyke, the retiring President, did not long re- 
main outside the official fold of the company nor was it intended 
that he should. Nathaniel M. Jones of Memphis, Tennessee, 
resigned as a Trustee July 8, 1874, and Mr. Van Dyke was im- 
mediately chosen in his stead. On October 2, 1874, the Executive 
Committee approved and confirmed his appointment as Counsel 
in the Loan department with a desk in the office for the then 
current year and on October 14, 1874, he was made a member 
of the Executive Committee in place of E. P. Allis, resigned. He 
remained a Trustee until July 1904, when his son William D. Van 
Dyke was elected. 

The Executive Committee appointed Matthew Keenan Gen- 
eral Agent January 31, 1874, but at their meeting of February 
9, 1874, designated him Superintendent of Agencies, which title 
was and is self-explanatory. Mr. Keenan's full official connec- 
tion with the company has, it will be recalled, been outlined earlier 
in this volume. 

The Chamber of Life Insurance, reference to which has here- 
tofore been made, renewed its career of co-operation about this 




O 



Five Years of Event fid History 171 

time and extended an invitation to the Northwestern to join. As 
this was an organization which by its articles was designed to 
attract the favorable attention of the community to life insur- 
ance; to promote by all proper means such just and equitable 
legislation as might be in the interest of the policyholders and 
by like means to oppose such proposed legislation as might be pre- 
judicial to such interests ; to obtain repeal of harsh laws, particu- 
larly those relating to the unfair taxation of life insurance; to 
diminish the expense of life insurance by co-operation and gen- 
erally to promote and protect the interest of policyholders, the 
Northwestern accepted the invitation on February 9, 1874 and 
continued a member of the Chamber for some time. 

It is always interesting to note the diverse questions — some 
of which were frivolous, while others were vital — that continu- 
ally arose in these early times while the customs and usages of the 
company were being settled, and the year 1874 had its full share. 
To illustrate, Mr. McClintock, the Actuary, appeared before the 
Executive Committee on January 31, 1874, with reference to 
southern risks and presented facts and figures which resulted in 
the adoption of a resolution that an extra premium of ten per 
centum per $1,000 of insurance should be required on all con- 
tinued premium life and endowment policies and a proportionate 
charge should thereafter be fixed by the Actuary on other forms 
of policies issued in Arkansas, Louisiana, Texas, Mississippi and 
in any part of Tennessee west of the Cumberland mountains and 
south of the latitude of Clarksville; February 9, 1874, the Execu- 
tive Committee was called upon seriously to consider a com- 
munication from an enterprising Milwaukee firm that solicited 
permission to place a sign on the telegraph pole in front of the 
office; March 14, 1874 the committee received earnest communica- 
tions from two of the officers asking that their rank might be 
clearly defined. Here diplomacy was required and the report 
which was adopted, fairly bristled with it. The committee re- 
ported that they had consulted the publications of other com- 
panies and found no fixed and uniform rule to guide them in 
determining priority of rank of either officer over the other. 

A law which was passed in California March 1, 1874 went 
into effect July 1, 1874 requiring foreign companies to appoint 
an agent there who should practically have all the powers of 



172 Five Years of Eventful History 

executive officers, for every act, statement, representation or 
agreement made by him was to have the same force and effect 
as if done by the company. The officers could do no less than 
withdraw from the state. 

Virginia having passed a law requiring the deposit of $10,000 
from foreign companies as a condition precedent to doing busi- 
ness there, on July 20, 1874, the President and Secretary were 
authorized to make the required deposit in bonds with the State 
Treasurer. This is the only state or country in which the com- 
pany maintains a deposit for this specific purpose. Deposits in 
Wisconsin and Canada are mentioned elsewhere. 

The character of questions that were continually arising in 
the development of the business will be realized without further 
comment, but perhaps the most important one that came up in 
1874, next to the election, was that calling upon the company to 
decide a method of charging its taxes. The records show that 
Mr. McClintock, the then Actuary, had a decided opinion on the 
subject. He appeared before the Executive Committee November 
25, 1874, in that behalf, with the result that it was decided that 
all taxes exacted on and after January 1, 1875, by any state in 
the nature of a percentage upon premium receipts, should, so far 
as practicable, be levied upon the policies in said states respec- 
tively and deducted from the dividends payable the same year 
upon such policies. This followed the general rule adopted by other 
companies and in 1875, an agreement was arrived at and adopted 
by the Northwestern, all the leading New York companies, and 
several elsewhere, the principle of which was to charge taxes 
wherever levied against the dividends of those who pay their 
premiums in the taxing states. 

Thus the policy remained for many years, the Northwestern 
attempting in good faith to comply with a rule that seemed to be 
in accord with strict equity, but which the other companies to the 
compact in a short time abandoned. 

The question came up again in 1893, and was referred to a 
committee composed of the Actuary, Second Vice President and 
Counsel. 

The conclusion of the committee was that the existing plan 
in practice failed of its purpose of bearing equally and without 
discrimination on those members only who ought to pay the tax. 



1875 



Five Years of Eventful History 173 

It gave it as its opinion that a nearer approach to perfect equity 
would be accomplished by charging the whole tax to the general 
fund, relieving individual members from a specific charge against 
their annual dividends, and recommended action accordingly. 
October 23, 1893, the Executive Committee rescinded the action 
of November 25, 1874, to take effect January 1, 1894, since which 
time taxes have been charged to the general fund, in accord with 
universal practice. 

Comparisons between the business of 1873 and 1874 show the 
gratifying fact that the panic of the former year, which came to 
a climax in September, had not so thoroughly depressed affairs 
that the business of 1874 was alarmingly affected. 
On the contrary, the annual report showed that 
during the year 1874 there was an actual increase 
in the number of policies written and the amount 
of risk assumed. 

The totals for 1874 were 4,858 policies issued covering an in- 
surance of $11,072,737 as against 4,660 in 1873, insuring $11,- 
061,361. The whole number of policies in force January I, 1875, 
was 35,402 and the total amount at risk on that day, $65,301,021. 
Not only this, but the loan feature of the business showed 
an increase over 1873, the amount invested in bonds and mort- 
gages on January 1, 1874 having been $7,986,335.38 as against 
$9,498,388.90 on January 1, 1875. The assets of the company 
also increased $1,433,952.79 in 1874, reaching the total of $15,- 
527>53i-95 on January 1, 1875. 

The loan feature was now looked upon as most important and 
the Trustees' meeting of January 26, 1875, was largely devoted to 
its consideration. A comprehensive statement of the then existing 
loans was made and the Examining Committee's report was ana- 
lytical of the investment feature. In order to facilitate the work 
of investment and to insure due attention to it, the Executive 
Committee was increased from five to seven members and the 
suggestion was made, for the first time, that the amount and 
importance of the company loans warranted separate divisions for 
checking and supervision of the taxes and fire insurance appurte- 
nant to mortgages to the company. These separate divisions 
were subsequently created and are now in operation, important 
adjuncts to the loan end of the company's business. 



174 Five Years of Eventful History 

One of the important transactions of the year was the taking 
over of the outstanding insurance of the Minnesota Mutual Life 
Insurance company. 

This company was originally organized in 1856 but was later 
re-organized and had a line of business established by 1875 which 
it desired to re-insure in the Northwestern. Negotiations were 
opened between the two companies, Hon. H. H. Sibley, the Presi- 
dent of the Minnesota Mutual who had been elected a Trustee of 
the Northwestern January 26, 1875, and its Secretary, H. Knox 
Taylor, representing the Minnesota institution, and the Actuary 
and Medical Director representing the Northwestern. After a 
careful examination of the books and other records of the ap- 
plicant company by the Northwestern officers, the small business 
controlled by the Minnesota company appearing excellent, the 
Executive Committee on June 22, 1875, decided to conclude an 
agreement for the assumption of the risks upon terms named in 
a contract signed on behalf of the companies in interest on July 
2, 1875. 

By the terms of the instrument, the Northwestern took over 
some 1,096 policies aggregating $1,305,775 of insurance. 

Notwithstanding the fact that the business then acquired 
was, measured by the ordinary and accepted standards, quite de- 
sirable, the company ultimately found that the mortality exper- 
ience did not come up to the Northwestern standard, and the 
company thenceforward refused to consider propositions of that 
character. Adherence to its own careful selection of risks has 
secured the unique position of the Northwestern among life in- 
surance companies as regards its mortality experience. 




4tUr C%UuJiLu^ 



Depression and Recuperation 



1876 



IF ONE were writing an analytical history of life insurance he 
would set down the period from 1876 to 1880 inclusive, as 
one of general depression, with recuperation toward the end. 
As to the Northwestern, it can only be conjectured that its busi- 
ness was affected by the prevailing dullness, notwithstanding the 
fact that the records disclose a continuing increase in results. 

The report of January 21, 1876, showed that during the 
previous year 6,054 policies covering risks to the amount of $12,- 
757,501 were placed on the books, and that the whole number of 
policies in force on January 1, 1876, was 36,428, 
the whole amount at risk being $67,124,215. 

The assets of the company on January 1, 1875, 
it will be recalled, were $15,527,531.95, and the in- 
crease during the year 1875 was $1,591,280.16, making the assets 
on January 1, 1876, $17,118,812.11. At that date the amount 
loaned on bond and mortgage was $10,601,468.53. 

Especially noteworthy is the fact that the interest receipts 
for 1875 exceeded the death losses and expenses by $200,391.62. 

The Examining Committee, appointed under the by-laws to 
make an examination of the affairs and assets of the company, 
gave careful attention to the subject of the investments in its 
report to the Trustees of January 21, 1876, and recommended 
the continued loaning of the funds of the company on bonds 
and mortgages as long as the fullest and most approved security 
was offered, but that in case the available loan engagements could 
not be consummated fast enough to keep the balance in the banks 
down to $200,000, the excess be invested in government bonds. 
The committee also recommended that additional help be em- 
ployed in the Loan department and that the important questions of 
rate, interest and kind of security be left entirely to the Execu- 
tive Committee. 

At this meeting of Trustees, the only change in the official 
staff was the election of Matthew Keenan as Vice President to 
succeed Oren E. Britt. 



1877 



178 Depression and Recuperation 

The agents at the preliminary annual meeting formed a tenta- 
tive association at this time, which crystallized into a permanent 
organization the following year. Edward J. Smith was elected 
temporary President and E. S. Walker, Secretary. Its first of- 
ficial act was to thank the officers and Trustees for their kind 
treatment and to make the assurance that as its members went 
back to their respective fields of work, it would be with renewed 
vigor and enthusiasm and with the determination to increase the 
business two- fold for the coming year. 

In making its annual report to the Trustees on the business of 
1876, the Executive Committee under date of January 27, 1877, 
noted that notwithstanding the unsettled and depressed financial 
condition of the country, under which all business 
interests had suffered during the year, the com- 
pany had continued to advance and challenged com- 
parison with all its rivals in the character of assets, 
the strength of its reserve, the proportion of its surplus, and the 
magnitude of its dividends. 

It was shown that the year 1876 was the third in succession 
during which the interest receipts of the company exceeded the 
combined disbursements for death claims and expenses, thus fur- 
nishing a practical proof of economy of management, favorable 
mortality experience and the income-producing power of its in- 
vestments. 

On January 1, 1877, the total assets of the company were 
$18,062,825.02. The total amount then loaned on mortgages was 
$11,605,627.99 and invested in United States and other bonds, 
$375,259.08. The average annual rate per centum on the com- 
pany's investments was 8.94. 

During 1876, 4,968 policies of life insurance were issued for 
$11,404,726 making the grand total of 36,456 in force with the 
amount at risk, $67,493,191. The income of 1876 was $3,925, 
372.25, while the death claims paid amounted to $872,865.51. 

The report of the Examining Committee to the Trustees at 
the meeting of January 31, 1877, was again devoted largely to com- 
ments on the loan feature and was generally commendatory of 
the system and the character of the loans. One of the interesting 
incidentals of the report was the finding that the average security 
on all loans then in force was $3.68 for every dollar invested. 



Depression and Recuperation 



179 



William P. McLaren was elected a Trustee of the company at 
the annual meeting of January 31, 1877, and so continued to the 
date of his death. He also held other official positions. 

William Pratt McLaren was born in Scotland, June 19, 1834. 
He was educated in parochial schools at Glasgow until fourteen 
years of age after which he spent two years at a grammar-school 
in Perth. In 1853, he came to the United States, and after view- 
ing business prospects, settled in Montreal, Canada, in 1856, en- 
gaging in the grain and flour business. He came to Milwaukee 

in 1864 and went into 
the commission busi- 
ness, retiring in 1884 
to look after private 

t interests and those of 

financial institutions 
with which he became 
connected. 
On January 29, 
1879, Mr. McLaren 
was elected a member 
of the Executive 
Committee ; on July 
19, 1893, Third Vice 
President and on July 
18, 1894, Second Vice 
President, which po- 
sition he held at the 
time of his death, 
March 2, 1904. 

He was a very 
able and valued officer. The Executive Committee, in a tribute 
to his memory, after reviewing his services in various capacities 
during a period of twenty-seven years, said : "More than that, 
and in greater measure than can be said of most men, he gave to 
the company, in an unstinted and devoted way, the best work of a 
singularly clear, discriminating and well-trained mind, a remark- 
able memory and untiring industry. 

"He literally put his life and all its energies into his work, 
with intelligent and rare fidelity. 




Wm. P. McLaren 



]8o Depression and Recuperation 

"The company loses an efficient guiding hand in some of its 
very important fields of endeavor and accomplishment; and his 
associates will always hold in affectionate remembrance his un- 
failing courtesy and his qualities of cultivated and genial compan- 
ionship." 

The Agents' Association already noted, effected a perma- 
nent organization by the adoption of a constitution and by-laws on 
January 31, 1877 aiming thereby to become better acquainted with 
each other, with the officers and Trustees and with the resources 
and methods of the company, to represent and communicate the 
wishes and suggestions of policyholders in their several districts, 
to consult together as to common interests and to act together and 
in harmony with the officers and Trustees on all matters relating 
to the benefit of the company. 

The association thus formed has continued uninterruptedly 
from that date. Annual meetings have been held at the home of- 
fice and the best thought of earnest men has been directed to its 
affairs. The papers presented at various times before this associa- 
tion are insurance classics and the practical results it has ac- 
complished cannot be over estimated. 

The association has a distinct history of its own which can- 
not be outlined here. It has its records ; its distinctive literature 
and its traditions. Only such features of its work and proceed- 
ings, however, as may be classed with important historical events 
in the life of the company can be noted in these pages. 

Following is a list of those who have served as officers of the 
association : 

PRESIDENTS 
Edward J. Smith, Boston, Mass. .. .January 31, 1877 to January 25, 1881. 

Col. John B. Cary, Richmond, Va January 25, 1881 to July 19, 1898. 

E. W. Poindexter, Topeka, Kas July 19, 1898 to July 18, 1899. 

M. J. Mack, Cincinnati, O July 18, 1899 to July 17, 1900. 

J. Carlton Ward, New York City July 17, 1900 to July 16, 1901. 

Isaac Kaufman, Minneapolis, Minn July 16, 1901 to July 17, 1901. 

A. W. Kimball, Chicago, 111 July 17, 1901 to July 15, 1902. 

H. D. Rodman, Louisville, Ky July 15, 1902 to July 14, 1903. 

D. E. Murphy, Milwaukee, Wis July 14, 1903 to July 19, 1904. 

John I. D. Bristol, New York City July 19, 1904 to July 18, 1905. 

Louis E. P. Smith, Boston, Mass July 18, 1905 to July 17, 1906. 

R. J. Woods, Sioux Falls, S. D July 17, 1906 to July 16, 1907. 

William T. Gage, Detroit, Mich July 16, 1907 



Depression and Recuperation 181 

VICE PRESIDENTS 

Lindsey Webb, Minneapolis, Minn July 17, 1888 to July 15, 1890. 

(first incumbent) 

L. W. Moody, New Haven, Conn July 15, 1890 to July 18, 1893. 

E. W. Poindexter, Topeka, Kas July 18, 1893 to July 17, 1894. 

John Mallaney, Sioux Falls, S. D July 17, T894 to July 16, 1895. 

Isaac Kaufman, Minneapolis, Minn July 16, 1895 to July 14, 1896. 

George Pick, Milwaukee, Wis July 14, 1896 to July 20, 1897. 

E. W. Poindexter, Topeka, Kas July 20, 1897 to July 19, 1898. 

M. J. Mack, Cincinnati, O July 19, 1898 to July 18, 1899. 

J. Carlton Ward, New York City July 18, 1899 to July 17, 1900. 

Isaac Kaufman, Minneapolis, Minn July 17, 1900 to July 16, 1901. 

Charles D. Norton, Chicago, 111 July 16, 1901 to July 17, 1901. 

H. D. Rodman, Louisville, Ky July 17, 1901 to July 15, 1902. 

D. E. Murphy, Milwaukee, Wis July 15, 1902 to July 14, 1903. 

John I. D. Bristol, New York City July 14, 1903 to July 19, 1904. 

Louis E. P. Smith, Boston, Mass July 19, 1904 to July 18, 1905. 

R. J. Woods, Sioux Falls, S. D July 18, 1905 to July 17, 1906. 

William T. Gage, Detroit, Mich July 17, 1906 to July 16, 1907. 

Charles E. Albright, Milwaukee, Wis July 16, 1907 

SECRETARIES AND TREASURERS 

Edwin S. Walker, Springfield, 111.. January 31, 1877 to January 25, 1881. 

J. W. Howell, Scranton, Pa January 25, 1881 to January 24, 1882. 

Edwin S. Walker, Springfield, 111 January 24, 1882 to July 20, 1886. 

Geo. E. Copeland, then Davenport, la July 20, 1886 to July 18, 1893. 

C. D. Van Vechten, Cedar Rapids, la. .. July 18, 1893 to July 16, 1895. 

Mills Whittlesey, Trenton, N. J July 16, 1895 to July 14, 1896. 

J. F. Schindler, then Milwaukee, Wis July 14, 1896 to July 14, 1903. 

A. W. Stevens, then Chicago, 111 July 14, 1903 to July 18, 1905. 

W. K. Murphy, Milwaukee, Wis July 18, 1905 to July 16, 1907. 

Franklin Mann, Chicago, 111 July 16, 1907 

Of the Presidents, Edward J. Smith, Col. John B. Cary, A. W. 
Kimball and D. E. Murphy have passed away. 

Edward Johnson Smith was born at Hollister, Massachusetts, 
October 22, 1838. He began soliciting life insurance in 1864 
and came to the Northwestern in 1869, taking the general agency 
for New England, and died in Boston July 17, 1886. 

Col. John B. Cary died at his home in Richmond, Virginia, 
January 13, 1898, in the seventy-ninth year of his age, after serv- 
ing continuously since January 25, 1881 to the date of his death 
as President of the association. 

While he lived, no other man could take his place and on his 



182 Depression and Recuperation 

death the association honored his memory by the adoption of the 
following resolutions : 

"WHEREAS, on the 13th day of January 1898, death removed from 
us our beloved President and co-worker Col. John B. Cary, of Rich- 
mond, Va., and 

"WHEREAS, for twenty-one years he was a General Agent of The 
Northwestern Mutual Life Insurance Company for the States of Vir- 
ginia and North Carolina, and 

"WHEREAS, for sixteen years he has been by unbroken series of 
annual elections chosen President of this body, always manifesting a 
leadership which we have delighted to follow and year after year 
gladly honored as we may perhaps never honor another, and 

"WHEREAS, we feel that his gracious presence, his thoughtfulness, 
and comprehensive grasp of our needs, his inspiring eloquence, as well 
as his superior parliamentary leadership, have contributed immeasur- 
ably to the high and profitable character of the meetings of our asso- 
ciation for many years; therefore, be it 

"RESOLVED, That in the death of our beloved President we have 
suffered a grievous personal loss, our association has lost a model 
officer, our company an advocate to whom it owes much, one whose 
devotion was characterized by a never-flagging zeal in spreading its 
choicest blessings, and the business of life insurance has lost one of 
its most conspicuous as well as purest, exponents; and 

"RESOLVED, That not the least among the rich legacies he has 
left us in the unmistakable testimony of his long and eventful life, is 
the gentleness, scholarship, integrity, true culture, high character and 
noble endeavor, as well as love to God and man, which illustrate the 
truest type of the life insurance agent." 

Owing to the otherwise intimate connection of Messrs. Murphy 
and Kimball with the company, more extended reference to them 
will be made in another part of this work. 

The year 1877 brought to the company its first experience with 
official examinations. In the summer of that year, the Insurance 
Commissioner of Maryland and his actuary called on President 
Palmer and informed him that they had come to investigate the 
company. The President felt that if the investigation was to be 
a real one — such a one as would be of benefit to all concerned — 
other departments ought to be called in and he suggested that 
those of Wisconsin, Illinois, Massachusetts and New York be in- 
vited to participate. This was arranged and the five departments 
with their corps of experts began the examination. 



Depression and Recuperation 183 

As A. W. Kimball described it in a speech before the Agents' 
Association in 1891 : 

"They pulled off their coats and rolled up their sleeves, and put 
on their spectacles and took out their knives, and they got up on step- 
ladders and down on their hands and knees, and they went through 
every vault, drawer, shelf and pigeon-hole of the company, from attic 
to basement, examining every record and paper on both sides, with 
a deadly determination to find out what was 'wrong' about this com- 
pany, and to discover those black spots on the planet Jupiter which 
the astronomical gentlemen from Maryland were so sure were there. 
They actually camped out with the Northwestern for over six weeks, 
until one morning in the fall, exhausted with their long labors, they 
all came together and sat down on a bench, and rolled down their 
sleeves, and put on their coats and tooks off their spectacles, and 
put their knives back in their pockets and looked lugubriously at one 
another and whispered 'I-guess-we-came-to-the-wrong-place.' The 
mountains had labored and brought forth not even a ridiculous 



This investigation, however, was extremely valuable, since the 
commissioners and investigators in their report gave the com- 
pany a bill of health which invoked commendatory comment all 
over the United States. 

They found that the assets of the company on July 1, 1877, 
were $18,408,523.95, with liabilities of $15,521,238.33, leaving a 
surplus as regards policyholders of $2,887,285.62. 

The investments of the company in mortgages at that time, 
amounted to $11,546,404.52 or nearly two-thirds of the assets and 
the security in every loan largely exceeded that required by 
law. The examiners were not satisfied with the company's 
figures in this regard, but made a special appraisal of their own 
and found, that even under the depressed state of the real estate 
market, the mortgage loans of the company were secured by 
values amounting to more than three times the total of the loans. 

They also found that only reasonable salaries were paid of- 
ficers and employees and that no officer received any compensa- 
tion whatever contingent on the business done by way of commis- 
sion on surplus or in any other manner than by fixed salary estab- 
lished annually by the board of Trustees. 

In brief, in every detail of the business they found much to 
commend and nothing to condemn or criticise. The public press 



184 Depression and Recuperation 

throughout the country took up their report and commented freely 
on the magnificent showing of the new institution in the grow- 
ing west. The following excerpt, taken at random from the press 
comments of the times, is from the Brooklyn Catholic Review of 
October 16, 1877: 

"We print on the last page of this paper the report of the Com- 
mission of Insurance Superintendents who have lately concluded an 
examination of The Northwestern Mutual Life Insurance Company. 
It is a very remarkable testimony from well-known and efficient public 
officers, and their unqualified recommendation, coming as it does from 
a source which is beyond question, must carry with it a weight to 
which it would be difficult to add. From those who have been 
acquainted with the Northwestern, its management and method of 
business, we are glad to hear that the report of the commission is 
only a confirmation of what has already been patent to them. The 
company has during the past seven or eight years, owing to a series 
of causes which have accompanied it from the beginning, advanced 
with gigantic strides, until today it holds a foremost place in the very 
front rank of life insurance companies. And with a true Northwestern 
spirit it sounds no timorous challenge, parades no confusing figures, 
or makes no obscure comparisons with the very oldest and greatest 
of its rivals, but in the plainest and boldest key asserts its 'superiority 
in every element which serves to make up the strength, security and 
prosperity of a life insurance company. Its ratio of surplus to liabili- 
ties is greater than that of any similar organization; its interest re- 
ceipts have for years more than paid all its death losses and expenses — 
a showing no other company in the world can make; and its per- 
centage of dividends to policyholders is largely in excess of that paid 
by any other company; so that in these most vital elements of great- 
ness it stands pre-eminent.' All this must have been the result of a 
management prudent, able, honest and far-seeing, coupled with causes 
which the Northwestern alone has been able to take advantage of." 

In concluding their report the commissioners said it was also 
due the company to state that its books and accounts in every de- 
partment showed a degree of accuracy not easily surpassed; in 
the actuarial department, the record books and all details of ac- 
count could not be more satisfactorily kept and the system of 
accountability and accuracy throughout found unqualified ap- 
proval. The report was signed by Jesse K. Hines, Insurance 
Commissioner for Maryland ; Peter Doyle, Secretary of State 
and Ex-Officio Commissioner of Insurance of Wisconsin ; S. H. 
Rhodes, Insurance Commissioner of Massachusetts; John F. 



1878 



Depression and Recuperation 185 

Smyth, Superintendent of Insurance, of New York, and T. B. 
Needles, Auditor and Ex-Officio Insurance Commissioner of 
Illinois. 

The assets of the company on the first day of January 1878, 
were $18,173,756.90; the total amount loaned on real estate secur- 
ity was $12,193,014.83 and the whole number of policies in force 

was 34,766, the whole amount at risk being 

$64,416,847. 

During the year 1877, the company issued 3,650 

policies covering risks to the amount of $7,859,542. 
The income for the year was $3,711,087.11, and the death losses 
paid were $763,844.86, distributed in twenty-nine states and terri- 
tories. Notwithstanding the continued pressure of financial dis- 
tress throughout the country, the interest actually received by the 
company in 1877 was largely in excess of that of any previous 
year and, for the fourth successive time, the company was enabled 
to pay all its disbursements for death claims and expenses out of 
the interest receipts. 

The growth of the company made a separate Law department 
a requisite in place of referring its multiplied legal matters to 
an outside law office, and it was resolved to appoint a Counsel 
who was to have the general charge and responsibility of all the 
law business of the company and who should devote his entire 
time to its service. David G. Hooker who had done much of its 
law business in the past and was thoroughly familiar with the 
affairs of the company was elected Counsel on February 11, 1878, 
and held the position until his death March 24, 1888. 

David G. Hooker was born in Poultney, Vermont, September 
14, 1830. He graduated from Middlebury College in 1853, and 
in 1856 was admitted to practice law. He came to Milwaukee 
in 1856, and at different times was associated with some of the 
most eminent members of the bar in Wisconsin. He was city at- 
torney of Milwaukee from 1867 to 1870 and its mayor in 1872 
and 1873. After being appointed Counsel of the company, he 
was elected a Trustee on July 10, 1878, to fill the vacancy on 
the board created by the resignation of Henry B. Sherman, of 
Milwaukee, and later was appointed a member of the company's 
Executive Committee. 

No better testimonial of Mr. Hooker's ability and worth need 



1 86 Depression and Recuperation 

be given than to repeat the words of the Judge of the Superior 
Court of Milwaukee County, in presenting a memorial of the bar 
of Milwaukee, to the Supreme Court of Wisconsin. He said: 
"Mr. Hooker excelled in safe and judicious counsel. Deliberate 
in coming to his conclusions, he expressed them when formed 
with brevity and great precision and adhered to them with the 
tenacity of strong conviction. Reflection and firmness were pre- 
dominating qualities. With these tendencies of mind, there were 
no hasty opinions or ill-considered advice given by him. In his 
specialties of real estate and insurance law, to which in later life 
he devoted himself, he became a master. On questions of title 
and investment, ranging through an almost limitless field of in- 
quiry, and involving the statutes and decisions of many states, 
he became an unquestioned authority. It will be to his imperish- 
able credit that the vast securities of that great insurance com- 
pany which he so ably counseled and faithfully served are with- 
out a flaw in title, and will stand secure as adamant whether in 
periods of panic and depression or amidst the fluctuations of time 
and credit." 

In recording his death the Executive Committee 

"RESOLVED that in the death of D. G. Hooker, The Northwestern 
Mutual Life Insurance Company has lost a thoroughly efficient and 
faithful officer, whose long experience, integrity and devotion to its 
interests will never be forgotten; the city has lost an upright, pure and 
useful citizen and all his associates have lost a true and valued friend." 

Formal resolution withdrawing from the Dominion of Canada, 
for reasons heretofore stated, was adopted by the Executive Com- 
mittee on March 18, 1878. 

It was early in 1878 that the company had one of its periodi- 
cal experiences with legislative attempts at excessive taxation. 
A bill was introduced in the legislature of Wisconsin to levy a tax 
of one per centum on the gross assets of the company, together 
with a tax of two per centum on its annual receipts for premiums 
and interest. The proposition was too repellant to the sense of 
justice of legislators to meet with favor. A new basis was adopt- 
ed, however, which doubled the existing rate, making it two per 
centum on the cash premium receipts in the state, with the real 
estate of the company still subject to taxation. This continued to 



1879 



Depression and Recuperation 187 

be the law for twenty years. (Chapter 256, Laws of 1878, ap- 
proved March 18, 1878.) 

In the course of the year it was found difficult to make satis- 
factory real estate loans of all accumulating funds and the Execu- 
tive Committee authorized the president to buy $500,000 of 
United States bonds of such issues as he might deem best for the 
purpose of investment. 

The year 1878, marked by shrinkage of values, many business 
failures and general financial distress, proved an unfavorable one 
also in the business of the Northwestern. 

The records show that on the first day of Janu- 
ary 1879, the company had less insurance in force 
than the year previous, although its assets had 
slightly increased. 

On the first day of January 1878, the company had 34,766 
policies in force representing a total amount of $64,416,847 in- 
sured. On the first day of January 1879, it had but 33,254 policies 
and the amount at risk was $61,441,014. In 1877, 3,650 policies 
covering $7,859,542 were written while the showing for 1878 was 
3,068 policies amounting to $6,584,816 of insurance. 

The successful accomplishment of specie resumption in Janu- 
ary 1879 gave fresh courage and hope to people, however, and 
the renewed confidence was productive of improving business re- 
sults. 

In the latter part of 1878, the company established an Inquiry 
department whose function was to acquaint itself with the moral 
hazard of applicants and those already insured. 

The Examining Committee commended the introduction of 
the system in a report to the Trustees on January 29, 1879. This 
committee also recommended that at each monthly meeting of 
the Executive Committee and at every quarterly meeting of the 
Trustees, full special reports by officers be made showing the 
progress of loan agents in the field; the sales and purchases of 
real estate ; the condition of the various general agencies and the 
progress made by special inspectors of real estate, to the end 
that Trustees should be given detailed information of what was 
being done and how it was being accomplished. This was im- 
mediately adopted. 

President Palmer sent a communication to the Executive Com- 



188 Depression and Recuperation 

mittee dated June 10, 1879, stating that the company had about 
$994,000 in banks drawing two and one-half per cent interest, 
owing to inability to make investments on safe and adequate secur- 
ity, for three principal reasons : 

FIRST: The large amount of unemployed capital in the country 
seeking investment, the amount apparently exceeding the demand in 
the territory within which the company was then loaning; 

SECOND: The narrow limits within which the investments of the 
company were circumscribed by the law of Wisconsin which governed 
them, being allowed to invest in proper proportions only in stocks of 
the United States; stocks of states; bonds of incorporated cities and 
towns and mortgages on real estate; and 

THIRD: The rigid scrutiny as to the character and value of prop- 
erty offered as security for loans on real estate which experience had 
proven was necessary to the safety of mortgage investments. 

He urged the Executive Committee to give careful considera- 
tion to the whole subject of investments making them absolutely 
safe and at the same time productive of a satisfactory rate of in- 
terest as soon as possible after reaching the treasury of the com- 
pany. 

He suggested further that experience had demonstrated the 
necessity of separating the loan business entirely from that of 
soliciting life insurance. The insurance solicitor needed all his 
time and thought to devote to his branch of the business; the 
loan agent needed to educate himself to that business and to con- 
stantly study values, local and general, specific and relative, 
throughout his field. The financial character and standing of 
every loan applicant should be investigated and a personal ex- 
amination and valuation of the property offered for security 
should be made by one acting for, wholly in the interests of, and 
paid by, the company. 

This meant the selection and placing of competent and re- 
liable men in the loaning field for the purpose indicated, and the 
Executive Committee adopted a resolution to the effect that a Spe- 
cial Loan Agent should be placed in each loaning field, to give 
his entire time and attention to obtaining applications for loans, 
investigating the character and value of property offered as secur- 
ity, the business character and standing of the applicant and at- 
tending to consummating the loans. 



Depression and Recuperation 189 

Some months after this resolution was adopted one of the 
largest general agencies in the employ of the company made 
a formal request that the loan business be transacted through 
their agency, but the policy of the company was definitely settled 
by a reply to them on November 19, 1879, to the effect that no 
recommendation could be made involving a variation in the gen- 
eral policy of the company requiring all loan applications to be 
accompanied by an independent valuation of a salaried repre- 
sentative of the company who had no interest whatever in the 
result of the application. 

Thus began the company's existing system of effecting real 
estate loans through the medium of Special Loan Agents acting 
for the company and not the applicant, and not dependent upon 
the acceptance of the loan for compensation or commissions. 

At the time the resolution was adopted the nucleus of the sys- 
tem had already been formed by the employment of A. B. Alden, 
in Ohio; Redmond Prindiville, in Illinois, and Clum Drew in 
Minnesota. Of these, Mr. Prindiville still remains with the com- 
pany as Special Loan Agent in Chicago, and is the dean of the 
profession. The names of the present Loan Agents of the com- 
pany will later appear. 

It is interesting to note that as early in the experience of the 
the company as 1879, it was found necessary to address a circular 
to the agents calling attention to the fact that frauds in life insur- 
ance were becoming manifest and alarming, and that when in- 
surance companies investigated mysterious deaths, influences not 
always discountenanced by agents were brought to bear to con- 
demn the action taken. Agents were reminded that they must 
bear in mind that officers and agents of insurance companies have 
a sacred fund to protect. 

It is probable that this circular was prompted by the publicity 
given the famous Hillmon case of Kansas. The facts in that case, 
briefly stated, are as follows : John W. Hillmon took out a large 
amount of insurance on his life early in 1879, all payable to his 
wife. Some of the insurance was taken as late as March 4 of 
that year. On March 17, 1879, it was claimed, Hillmon was killed 
by the accidental discharge of a gun in a camp near Medicine 
Lodge, a part of Kansas then sparsely settled. Investigators be- 
came convinced that Hillmon was not dead and that a conspiracy 



190 Depression and Recuperation 

had been formed to defraud the companies that had insured his 
life, the Northwestern not being among the number. The inter- 
ested companies, therefore, resisted payment of the death claims 
and suit being brought contended that Hillmon was still living 
and that the body produced at Lawrence, Kansas, where Hillmon 
resided, was the corpse of another man. The case was tried six 
times and was finally, in 1901, after being in the courts twenty- 
one years, decided against the companies. 

One of the singular whims of chance made itself manifest to 
the company in the summer of 1879, when the officers received a 
letter from a certain D. E. Murphy, of Chicago, inquiring about 
an agency. The Northwestern needed solicitors and on July 8, 
1879, a proposition was returned to him offering reasonable com- 
missions on business and containing the following: "To aid you 
in starting we will be willing to pay your board bill in the city for 
a short time at the rate of five or six dollars per week, and when 
it is thought advisable for you to go into the country, will advance 
you money to pay your expenses." 

Think of a letter like that written to Daniel E. Murphy who 
afterward became one of the largest producers in the United 
States. 

Mr. Murphy accepted the proposition and was so successful 
that on June 5, 1882, he was appointed General Agent for the 
Northern Peninsula of Michigan, and Marinette, Oconto, Flor- 
ence and Door Counties, Wisconsin. December 10, 1898, this 
agency was enlarged to include the Northern Peninsula and the 
whole State of Wisconsin. February 21, 1902, a new contract 
was made by the company for the same field with Mr. Murphy 
and William H. Surles. 

Daniel E. Murphy was born in Ireland, June 16, 1843 ; came 
to America in 1859; worked at the carpenter's trade until 1868; 
then opened a book-store at Bridgeport, Connecticut; developed 
a real estate, life insurance and steamship agency; was financially 
embarrassed by the panic of 1873, and subsequently came to the 
Northwestern as stated. He died May 6, 1906. 

It has been publicly said of Mr. Murphy that he was one of 
the best insurance men of his time. He was eminently successful 
as a business producer. His partner, Mr. Surles, continued with 
the company to the date of his death, August 20, 1907. 



Depression and Recuperation 191 

On August 9, 1879, the company had the proud satisfaction 
of issuing policy numbered 100,000 but it is to be regretted that the 
insured, a gentleman then living in Boston, suffered this unique 
policy to lapse after one semi-annual premium had been paid, 
thereby losing the benefit of a profitable investment and utterly 
disregarding the great honor that would have come to him had he 
carried policy No. 100,000 to finality. 

An air of modernity is here and there distinguishable in the 
company affairs of 1879 and one notes with interest a long and 
technical report by three of the Executive Committee, outlining 
in almost verbose detail, an elevator system for the office-build- 
ing and a method of heating by steam. A somewhat startling 
proposition then, it was not so long before both Were installed. 

Cornelius Walford, of London, England, the great lawyer and 
publicist, whose Insurance Guide and Hand Book is standard, was 
a guest of Actuary McClintock at the home office of the company 
September 16, 1879. 

On the twenty-fifth day of November, 1879, The Northwest- 
ern Mutual Life Insurance Company attained to its majority but 
as it did not accomplish much between November 25, 1858, the 
date it was organized, and the first day of the fol- 
lowing year, its status on the first day of January 
1880, may truthfully be said to represent twenty- 
one years of growth. Commentators on this de- 
velopment at the time considered its wonderful career of progress 
attributable to the exhibition of unusual prudence, economy and 
sound judgment on the part of its officers, not only in the in- 
vestment of funds but in the selection of lives and the curtail- 
ment of management expenses. 

The annual report of conditions at the close of business, De- 
cember 31, 1879, made the assets $18,002,142.35 and the surplus 
over a four per cent reserve, $3,028,158.86. During the year the 
company issued 3,345 policies covering risks to the amount of 
$7,640,660, making a grand total of 33,066 policies in force repre- 
senting $61,948,888 of insurance. 

Among the assets of the company were first mortgages on real 
estate to the amount of $10,398,984.63; premium notes, $2,154,- 
2 1 1.2 1 ; real estate, $1,666,997.96 and United States and other 
bonds, $1,913,525.19. 



1880 



192 Depression and Recuperation 

Returning confidence and ability on the part of the members 
to keep their insurance in force were indicated by the fact that 
during 1879, the company was called upon to pay about one-half 
as much for surrendered and lapsed policies as was paid the pre- 
ceding year. It looked as if public opinion had settled down (so 
the Executive Committee reported to the Trustees on January 
23, 1880) to the conviction that those companies which had suc- 
cessfully passed through the general business trials and disasters 
of the six years then passed, and were stronger than they were at 
the beginning of that period, were entitled to the fullest con- 
fidence. And so they were. 

On January 6, 1880, at an informal meeting of the Trustees 
called for that purpose, the President announced the death of Dr. 
Erastus B. Wolcott, whose official connection with the company 
has been heretofore outlined. 

Dr. Wolcott died January 5, 1880, at his home in Milwaukee, 
and a committee of five was appointed to draft suitable resolu- 
tions, which were adopted next day at a called meeting of the 
Trustees. After recounting Dr. Wolcott's connection with the 
company it was 

''RESOLVED that the memory of Dr. Wolcott deserves to be cher- 
ished not only by this board but by the city and state, as most honor- 
able, for his high integrity, innate love of justice, and unassuming but 
fearless independence; for his public services, his exalted position in 
his chosen profession and his high standing in the community in which 
he lived; for the courtesy which he habitually extended to all men, and 
his possession in an eminent degree of the attributes which make up 
the genial gentleman and honorable man." 

The Executive Committee passed a resolution in 1879, provid- 
ing for monthly reports by officers and corresponding meetings of 
the committee to receive and consider them. These meetings 
were generally held at seven o'clock in the evening so they would 
not conflict with the daily duties. It would gratify Northwestern 
policyholders to read these reports in full on the record-books 
of the company. No detail was too small to be slighted and 
every essential is shown in full. An extract from the records 
of a meeting held January 22, 1880 is here given. The Vice 
President, in reviewing the condition of insurance affairs at the 
time, said : 



Depression and Recuperation 193 

"I deem it proper to present to this committee the general situation 
of the life insurance business for the past year as well as for the last 
five or six years, or since the panic, and the consequent prostration 
of the business interests of the country affecting life insurance and 
the volume of new work more seriously perhaps, than any other trade, 
industry or pursuit. * * * Insurance agents did not find their 
occupation as profitable and remunerative and to their business of life 
insurance they added fire insurance or some other agency work of 
kindred character merely giving time to life insurance sufficient to 
save the business theretofore secured, without attempting to obtain 
new work. Hence occurred a large falling off in new business. This 
was not the only unpleasant or unfavorable outlook. A large amount . 
of business secured in years past, having been on our books and hav- 
ing paid annual premiums for one or two years, or more, the period of 
depression caused many to feel themselves unable to continue their 
policies and they have therefore discontinued them; taking their values 
in cash or in paid-up insurance. This was to be expected following the 
panic and the depressed condition of business. Persons were unem- 
ployed, business no longer yielding a profit for labor and capital 
invested was discontinued or prosecuted at a loss, and therefore, life 
insurance not being considered an immediate necessity, was on the 
list of articles not wanted. Insurance workers became fewer in num- 
ber and only those remained who had a paying business on their 
books. Others sought employment on a salary basis. This salary 
plan was tried, the company taking a risk which the agent was 
unwilling and perhaps unable to assume. It was not a success. * * * 
The older and larger companies have not reduced nor contracted their 
field of operations, but continue to work in the Southern states, Cali- 
fornia, and nearly all of them in Canada, fields abandoned by the 
Northwestern. These opposing companies, located at the great money 
and business centres of the country, have had all advantages, friendly 
and business connections to aid them in the immediate field of their 
operations, generally confined to the large cities and their vicinities, 
and to which the Northwestern was considered a stranger if not an 
intruder, and worse yet, a western company, a name generally con- 
sidered there as synonymous with 'wild-cat.' " 

The question of retiring from Missouri came up for considera- 
tion before the Executive Committee on January 22, 1880, that 
state having passed a law providing that no policy of insurance 
should be forfeited or become void for non-payment of premium 
after two annual premiums had been paid thereon, but should be 
subject to rules of commutation enacted by the law, and that after 
two full annual premiums had been paid, a policyholder should be 
entitled to paid-up insurance as provided in the statute. The 



194 Depression and Recuperation 

Northwestern's policies required payment for three years to 
secure paid-up insurance or a cash value. 

It was objected that the law sought to impose a different 
contract on policies issued in Wisconsin from that conveyed by 
policies issued elsewhere, destroying the principle of mutuality. 
Actuary McClintock wrote concerning it : "The formation of a 
special class of this kind is not at all like the constitution of a spe- 
cial class of members like a Tontine class. If all members have 
the right to join a Tontine class, if they please, none can com- 
plain of its institution. In this case no applicant residing out- 
side of Missouri can by any possibility enter the Missouri class, 
and hence all would have just ground of complaint." There 
were other objectionable features of the law to which special at- 
tention was given, and it became a very serious question whether 
the company should not give up its agency in Missouri and cease 
doing business there. This it was reluctant to do and it was 
concluded to insert in Missouri policies, and applications therefor, 
c stipulation that the contracts were to be construed according to 
the laws of the State of Wisconsin. Later it was decided that 
these contracts would, notwithstanding this stipulation, be ruled 
by the law of Missouri, and the Northwestern withdrew from that 
state in 1884. 

A modification having been made in the California law which 
appeared to be more acceptable to insurance companies, and a 
number that had withdrawn in 1874 having returned, it was de- 
cided that the Northwestern should renew its work in that field. 

The usual annual committee appointed in 1880 to examine the 
accounts and departments of the company made recommenda- 
tions to the Trustees on January 27, 1880, among which were 
that an Auditor be appointed and a complete divorcement made 
between the business of insurance and the placing of loans. 

In addition to the above, it having been suggested that the 
President should be relieved of some of his many arduous duties, 
the Trustees at their meeting January 28, 1880, provided for a 
Special Real Estate department to take charge of and sell as 
speedily as possible, the real estate acquired by the company 
from foreclosure of mortgages. 

The department thus formed was placed in charge of the As- 
sistant Cashier, but later under the personal direction of one of 



Depression and Recuperation 195 

the Vice Presidents and still later under a committee composed 
of the Vice President, the Auditor and a member of the Execu- 
tive Committee. 

It may be interesting to know that the first telephone ever 
used in the office of the Northwestern was installed May 11, 
1880. There are now in the home office sixty instruments, with 
a well established and running switch-board capable of caring for 
eighty telephones. 

This year was further noteworthy as the one in which the 
question of employing women at the home office, a subject that 
had been receiving considerable official attention on various oc- 
casions, was definitely settled by the employment of Miss 
Frances Lillian Madden, then of Elkhorn, Wisconsin, on Sep- 
tember 7, 1880. Miss Madden has, therefore, the unique dis- 
tinction of having been the first woman ever employed at the 
home office. She was given a place in the Collection division, 
and still remains with the company. Before coming to the North- 
western, Miss Madden was principal of a school at Lyons, Wis- 
consin, and among her pupils was Zeno M. Host, who afterward 
became Insurance Commissioner of Wisconsin. 

Following closely after Miss Madden, and on September 15, 
1880, Miss Hetta Merrill Russell came and remained until Sep- 
tember 30, 1905, when she resigned to make her home at Waynes- 
ville, North Carolina. 

There are now employed at the home office sixty- four women. 



Beginning of Progressive Era 



THE period which began with the year 1881 has been one of 
continued prosperity for The Northwestern Mutual Life 
Insurance Company. Starting with a hope of continued 
existence at a time when every circumstance fought to crush out 
its young life, and long before the west had been even thought 
of as a fitting place for the launching of financial enterprises; 
struggling in the midst of a general business depression and 
against the competition of great eastern companies, it had been 
pursuing its way and had passed through a severe financial crisis, 
which it bore without a tremor, yea, it had even thriven under 
years of business depression and had emerged with a reputation 
and a general system of business so well established that nothing 
could shake it. 

In the decade preceding 1881, the Northwestern, while faring 
much better than many of its contemporaries, had not increased 
its insurance in force. In 1871, it had sixty-five million out- 
standing; in 1872, sixty-two; in 1873, sixty- four; in 1874, sixty- 
four; in 1875, sixty-five; in 1876, sixty-seven; in 1877, sixty- 
seven; in 1878, sixty- four; in 1879, sixty-one, and in 1880, sixty- 
one million. 

Still it must not be forgotten that the premium receipts of the 
company from the date of its organization to January 1, 1881, 
had been $37,452,223.11 and its payments to its own members 
and representatives of deceased members aggre- 
gated $25,007,879.22. 

The year 1880 had already given evidence of the 
benefits accruing from improving conditions. Dur- 
ing that year 3,951 policies had been written, covering risks to the 
amount of $8,683,702, making on January 1, 1881, the whole num- 
ber of policies in force 34,172 and the total amount at risk $64,- 
967,081, an increase of 1,106 policies and $3,018,193 over the pre- 
ceding year. 

The loan account showed an investment of $9,985,729.05 in 
real estate mortgages; $2,470,184.31 in United States and other 



1881 




^ 



Beginning of Progressive Era 199 

bonds; $1,873,329.46 in premium notes and the total assets Janu- 
ary 1, 1881, were $18,346,212.38. The surplus was $3,011,- 
297.01. 

The Examining Committee in its inspection of the various de- 
partments of the company noted the many duties required of of- 
ficers and made a recommendation which led to substantial ad- 
vantage. This was the appointment of a Superintendent of 
Agencies whose whole time was to be given to the life insur- 
ance proper, as distinguished from the loan, land or any other de- 
partments of the company, the Vice President to give his entire 
time to the loan and real estate features of the work. 

It took until December 17, 1881, for circumstances to make 
this plan feasible but on that date Willard Merrill, Secretary, 
was designated as Superintendent of Agencies and the Vice Presi- 
dent, Mr. Keenan, was placed in charge of the Real Estate 
department. 

On April 13, 1881, a committee composed of H. L. Palmer, 
Matthew Keenan, Emory McClintock, William P. McLaren and 
Willard Merrill, reported that after making inquiries in regard 
to forms of tontine policies, the principles on which that class 
of insurance was based, the estimation in which it was held by 
the business public and its safety and practicability, they recom- 
mended that the company receive applications and issue policies 
on the Tontine plan. This was adopted although the Secretary 
of the company, Willard Merrill, did not concur in the conclusion, 
but nevertheless pledged his cheerful and cordial co-operation 
in aiding the system if adopted. 

The first full Tontine policy was issued by the company May 
4, 1881, and was numbered 107,157; the last one, November 25, 
1885, numbered 138,734. 

The first Semi-Tontine policy of tha company was numbered 
124,277 and was issued December 15, 1883. The issuance of 
semi-tontine insurance ceased June 24, 1905, the company volun- 
tarily abandoning the system of deferred dividend policies before 
there was any legislation whatever on the subject. 

Within the few lines thus devoted to the tontine feature in 
the company's progress, there is a fund of history that might be 
given. It is a form of insurance as to which there has always 
been controversy, which was once held in high favor but is now 



2C0 Beginning of Progressive Era 

discarded. Interesting as it is, it is hardly desirable here to dis- 
cuss the pros and cons of the system. It must be said, however, 
that the adoption of the Deferred Dividend plan at the time it re- 
ceived the Northwestern's sanction, was most propitious, as it im- 
mediately gave a new incentive to agents and enabled them to 
meet the demands of the insuring public. It is indisputable that 
from that time the Northwestern has never failed to make gains. 
Indeed, within six years succeeding its introduction, the company 
had twice as much insurance in force as it had in 1880. The 
Northwestern, however, never forced this plan but left it to the 
full choice of the applicant to take his insurance in this form or 
with the regular annual dividends. 

At the same meeting, also, began the custom of giving prizes 
to agents who annually led in the amount of business written, 
which continued until the Armstrong law appeared to prohibit 
the practice. Those who attained to the proud distinction of hav- 
ing led the field force of the company, since the competition was 
started on the basis of 1881, are here named: 



Date 


Class 


Name 


Residence 


Jan., 18S1 
Jan., 1882 
Jan., 1883 
July, 1883 
July, 1884 
July, 1885 
July, 18S6 
July, 1887 
July, 1887 
July, 1S8S 
July, 1889 
July, 1890 
July, 1891 
July, 1892 
July, 1893 
July, 1894 
July, 1895 
July, 1896 
July, 1897 
July, 1897 




D. Stevenson 

Jas. Allen 

D. E. Murphy 

Jas. Allen (6 mo.) 

D. E. Murphy 

D. E. Murphy 

John E. Dean 

Oliver Williams') „. 

> Tic 
L. L. Anderson J 

J. I. D. Bristol 
D. E. Murphy 
P. T. Throop 
I. Kaufmann 
I. Kaufmann 
Geo. Pick 
Geo. Pick 
Geo. Pick 
Geo. Pick 
Geo. Pick- 
No winner 
Stetson Leach 






Norwich, Connecticut. 




Norwich, Connecticut. 
Marquette, Michigan. 
Marquette, Michigan. 
Chicago, Illinois. 
Denver, Colorado. 
Louisville, Kentucky. 






New York City. 








Minneapolis, Minnesota. 
Minneapolis, Minnesota. 








Milwaukee, Wisconsin. 
Milwaukee, Wisconsin. 


Class AA 
Class A 
Class B 


Milwaukee, Wisconsin. 


July, 1897 


New York City. 



Beginning of Progressive Bra 



201 



Date 


Class 


Name 


Residence 


July, 1897 


Class C 


Millard W. Mack 


Cincinnati, Ohio. 


July, 1897 


Class D 


J. Carlton Ward 


New York City. 


July, 1898 


Class AA 


Geo. Pick 


Milwaukee, Wisconsin. 


July, 1898 


Class A 


Stetson Leach 


New York City. 


July, 1898 


Class B 


A. Turner 


New York City. 


July, 1898 


Class C 


Millard W. Mack 


Cincinnati, Ohio. 


July, 1898 


Class D 


J. L. Downes 


Baltimore, Maryland. 


July, 1899 


Class AA 


Geo. Pick 


Milwaukee, Wisconsin. 


July, 1899 


Class A 


J. Carlton Ward 


New York City. 


July, 1899 


Class B 


Millard W. Mack 


Cincinnati, Ohio. 


July, 1899 


Class C 


H. E. Crouch 


Chicago, Illinois. 


July, 1899 


Class D 


O. L. Gooding 


Minneapolis, Minnesota. 


July, 1900 


Class AA 


Geo. Pick 


Milwaukee, Wisconsin. 


July, 1900 


Class A 


Albert Turner 


New York City. 


July, 1900 


Class B 


Thomas Bell 


New York City. 


July, 1900 


Class C 


J. L. Downes 


Baltimore, Maryland. 


July, 1900 


Class D 


G. J. P. Raub 


Quarrysville, Pa. 


July, 1901 


Class AA 


Geo. Pick 


Milwaukee, Wisconsin. 


July, 1901 


Class A 


A. B. Newman 


Chicago, Illinois. 


July, 1901 


Class B 


Thomas Bell 


New York City. 


July, 1901 


Class C 


J. L. Downes 


Baltimore, Maryland. 


July, 1901 


Class D 


Sam D. Goza 


Denver, Colorado. 


July, 1902 


Class AA 


Geo. Pick 


Milwaukee, Wisconsin. 


July, 1902 


Class A 


A. Turner 


New York City. 


July, 1902 


Class B 


Chas. Sachs 


Chicago, Illinois. 


July, 1902 


Class C 


R. O. Becker 


Peoria, Illinois. 


July, 1902 


Class D 


N. S. Jonas 


Brooklyn, New York. 


July, 1903 


Class AA 


Geo. Pick 


Milwaukee, Wisconsin. 


July, 1903 


Class A 


B. N. Waller 


Council Bluffs, Iowa. 


July, 1903 


Class B 


A. C. Murdough 


Chicago, Illinois. 


July, 1903 


Class C 


No winner 




July, 1903 


Class D 


Wm. McMullan ) . 
D. P. Donovan ) 


Minneapolis, Minnesota. 


July, 1903 


Class D 


Boston, Massachusetts. 


July, 1904 


Class AA 


Robert R. Reid 


New York City. 


July, 1904 


Class A 


Dan. P. Donovan 


Boston, Massachusetts. 


July, 1904 


Class B 


J. T. McGiveran ) . 
Chas. Sachs ) 


Green Bay, Wisconsin. 


July, 1904 


Class B 


Chicago, Illinois. 


July, 1904 


Class C 


William McMullan 


Minneapolis, Minnesota. 


July, 1904 


Class D 


W. B. Lindsley 


Boston, Massachusetts. 


July, 1905 


Class AA 


Geo. Pick 


Milwaukee, Wisconsin. 


July, 1905 


Class A 


Dan. P. Donovan 


Boston, Massachusetts. 


July, 1905 


Class B 


M. E. O'Brien \ 
L. W. Mack J 


Calumet, Michigan. 


July, 1905 


Class B 


New York City. 



Beginning of Progressive Bra 



Date 


Class 


Name 


Residence 


July, 1905 


Class 


C 


J. W. McGiveran 


Green Bay, Wisconsin. 


July, 1905 


Class 


C 


Edward W. Allen 


New York City. 


July, 1905 


Class 


D 


H. N. Cockerline 


Salem, Oregon. 


July, 1905 


Class 


D 


Ralph H. Hobart 


Chicago, Illinois. 


July, 1905 


Class 


D 


N. P. Langford, Jr. 


St. Paul, Minnesota. 


July, 1906 


Class 


AA 


Geo. Pick 


Milwaukee, Wisconsin. 


July, 1906 


Class 


A 


Ralph H. Hobart 


Chicago, Illinois. 


July, 1906 


Class 


B 


Lawrence W. Mack 


New York City. 


July, 1906 


Class 


C 


Royal S. Goldsbury 


New York City. 


July, 1906 


Class 


D 


J. Griffin Daughtry 


New York City. 


July, 1907 


Class 


AA 


Dr. C. E. Albright 


Milwaukee, Wisconsin. 


July, 1907 


Class 


A 


Rudolph Recht 


New York City. 


July, 1907 


Class 


B 


Lawrence W. Mack 


New York City. 


July, 1907 


Class 


C 


William C. Mage 


St. Louis, Missouri. 


July, 1907 


Class 


D 


L. L. Anderson 


Louisville, Kentucky. 



The regard in which the Northwestern was held in the early 
8o's may be judged from correspondence had in March and April 
1881, between Willis Dan forth, a prominent physician of Mil- 
waukee, and William S. Candee, a banker of the same city, who 
occupied no other relation to the company than that of policy 
holder. Following are two of the letters which are self-explana- 
tory : 

"March 26, 1881. 
"William S. Candee, Esq., 

Cashier Mfg'r's. Bank, 
Milwaukee. 
Dear Sir: 

Your name has been mentioned to me by an agent of the North- 
western Mutual Life of this city as one who, among many others, 
has had an endowment policy in that company for a number of years 
now matured and paid. It is stated that the result of your experience 
is entirely satisfactory; that the company has not only given you 
insurance on a non-forfeiting policy for nineteen years, but has re- 
turned your money with 4-7/10 per cent compound interest, or 
$176.64 for every $100 you paid the company. I am contemplating 
insurance in some company and would be pleased to have you let me 
know if the above statements are true. 

Very truly yours, 

(Signed) W. Danforth." 



Beginning of Progressive Bra 203 

Replv : 

"Milwaukee, April 7, 1881. 

"Willis Danforth, M. D., 

Milwaukee, Wis. 
Dear Sir: 

Yours of the 26th ult., was duly received. In reply I cheerfully 
say that I have a very high opinion of the Northwestern Mutual Life 
of which you inquire. I am pleased to learn that you are contem- 
plating taking out a policy as I not only consider that company the 
very best there is, but I have ever regarded it as the plain duty of 
every man, rich or poor, to insure his life even before he insures his 
property, as life should be considered much the most valuable and 
there are more chances that men will die than that property will burn. 

About nineteen years ago I instinctively felt the necessity of in- 
suring my life. Unsolicited I went to the office of the Northwestern, 
then in its infancy, just the same as I would go to buy anything else 
that I felt the need of. I looked over the various plans and con- 
cluded to take an endowment policy. I was then thirty-one years 
of age, and I ordered the policy made payable at death or when I 
arrived at the age of fifty. The amount was $5,000. My policy has 
matured and I have received my money with the exception of one 
dividend not due until 1882. I must say right here that the result 
has been exceedingly gratifying, much beyond anything I could rea- 
sonably expect. Indeed I feel that I cannot say enough to do justice 
to the modest and efficient management which accomplishes such fine 
results. I will, therefore, give you the record of my policy so that 
you may judge yourself whether or not I have reason to be well 
satisfied. 

My age was thirty-one; the amount $5,000; the time nineteen 
years and the annual premium $237. 

Total premium in 19 years $4,503.00 

Total dividends received prior to 1881 1,492.91 

Net cost of policy 3,010.09 

Cash received from company March 24, 1881. $5,000.00 
Dividend of 1881 in addition 158.45 

Total cash received 5,158.45 

Another dividend will become due me in 
1882, which will probably be as much as 
the one just received with the amount of 
my policy, viz.: $158.45 158.45 

Total amount of policy with dividend added. 5,316.90 
Net cost of policy as above 3,010.09 

Net profit $2,306.81 

Or nearly 5% compound interest on my money with life insurance 
thrown in for 19 years. 



204 Beginning of Progressive Bra 

To put it in another light. I received about $177 for every $100 
in cash paid to the company. The number of my policy was 1810, 
being among the first issued, consequently its history is the history 
of the company; and as institutions of this kind like men have to 
creep before they can walk so my policy had to bear its full share 
of expense in the early establishment of the company. 

I will give you the earnings of my policy the first ten years as 
compared with the last: 

Total dividends the first ten years $ 422.24 

Total dividends the last ten years 1,387.25 



$1,809.49 
The language of this record cannot be improved by anything 
which I might gladly add. It simply speaks volumes for the manage- 
ment that without display or "gush" of any kind accomplishes such 
results. 

I have been told by agents of eastern companies that they could 
do better than the Northwestern. I have examined their plans and 
I have not seen a single case where their advertised results equalled 
the above record of my policy in the Northwestern. This being the 
case I have concluded to take out another policy in this western 
institution, believing it to be the best there is, and I have no hesita- 
tion in recommending it to your favorable consideration. 

Yours truly, 
(Signed) W. S. Candee." 

A special meeting of the Agents' Association was held on 
July 20, 1881, at which resolutions were adopted expressing un- 
qualified horror at, and condemnation of, the infamous shooting 
of President Garfield; extending sympathy to him and his family 
and expressing the hope of his speedy restoration to health, which 
resolutions were telegraphed to Secretary Blaine. 

Resolutions were also adopted requesting the company to ex- 
tend to other than ordinary life policies, the plan by which the 
first and second years' premium might be settled in part by credit ; 
expressing the opinion that January was a better time of the year 
than July in which to hold the annual meeting of the associa- 
tion, notwithstanding former action, and recommending a modi- 
fication of the then existing non-forfeiting rule so as to provide 
for an equitable amount of insurance in case of lapse, without 
surrender of the policy. 

These are but samples of the continuing requests and recom- 
mendations made by the association, and the officers at the home 



Beginning of Progressive Era 205 

office have always welcomed exchange of views between them- 
selves and those equally interested and concerned in the welfare 
of the company. The system has been an important factor in 
development and liberalization. 

It would be interesting to note the resolutions adopted each 
year at these agents' meetings but space allowed will hardly permit 
it. A special section of this work will give the evolution of the 
policy contract, and while the part the Agents' Association took 
in its liberalization may not specifically appear, it must, never- 
theless, be borne in mind that it is by no means insignificant. 

Now and then an examiner of the records is amused to find 
some detail that appears trivial in the present state of things. 
One such is shown in a formal resolution of the Executive Com- 
mittee dated September 10, 1881, authorizing the President to 
sign a consent for a street railway to run past the office building. 

Another diverting incident is found recorded at length in the 
diary kept by one of the officers. He has noted with accuracy 
that on Wednesday, July 20, 1881, the combination lock on the 
east vault refused to work. Immediately the man who built the 
vault was sent for and tried in vain to unlock it. Then an expert 
locksmith was called and after trying all the arts of his profession 
unsuccessfully, he advised knocking off the lock as the easiest 
and quickest way to get the door open. This was radical treat- 
ment and required high official sanction, so the President was 
consulted and advised the operation. The locksmith produced 
a cold-chisel and axe, and finally succeeded in breaking into the 
vault after demolishing the lock. Forcible entry was thus ac- 
complished and the routine of work again normally established. 

It is recorded that on May 4, 1881, Wm. P. McLaren was 
dispatched to Chicago where he rented a "double office fronting 
on the street in the second story of the Unity Building, 79 Dear- 
born Street, for $36 a month," with use of a safe. This was for 
the company's Chicago Special Loan Agent, Redmond Prindi- 
ville. 

At or about the same time, the company decided to invite 
loans of $200,000 or more at five per centum in Chicago and Mil- 
waukee. This was the first bid the company had made up to 
that time for real estate loans at five per cent interest. 

Engaging as these details may be, space prompts a limit of 



1882 



206 Beginning of Progressive Era 

examples. However, before closing the history of 1881, men- 
tion may be made that on October 19, 1881, the Trustees defi- 
nitely decided that all agents of the company writing and put- 
ting in force annually $100,000 of insurance, should be invited 
to the home office at the time of holding the annual Trustees' and 
General Agents' meetings, the company to pay railroad fares and 
hotel bills while in attendance at such meetings. This was 
adopted and was maintained as a custom for a series of years. 

On the first day of January, 1882, the officers were enabled to 
report to the Trustees that the new insurance written during the 
year 1881 nearly doubled the new business of 1879, was about 
twenty-five per cent larger than that of 1880 and 
was greater than that of any year since 1870. 

During the year the company issued 6,012 pol- 
icies amounting to $15,038,242, which gave it a 
total of 37,491 policies in force January 1, 1882, representing 
$74,503,740 of insurance. 

In addition, $3,200,822.26 was loaned in 1881 on real estate 
security, making it the largest single loan year in the history of 
the company up to that time, and bringing the total investment 
in this class of securities up to $11,043,228.04. The assets Janu- 
ary 1, 1882, were $18,859,458,96, and the surplus was 
$3,022,611.61. 

One of the early acts of the year 1882 was to take necessary 
steps to change the time of holding the annual meeting for the 
election of Trustees, a majority believing that July was a better 
time than January for the purpose. Consequently, the passage 
of chapter 192, Laws of 1882, was secured changing the date to 
the third Wednesday in July and this has since continued to be 
the date of the annual meeting. 

On January 25, 1882, James W. Skinner was elected Secre- 
tary. He held the position twenty-three years, when he was elect- 
ed Second Vice President. 

Thomas W. Buell, who came to the company in July 1865 as 
a solicitor and subsequently entered the official force as advertis- 
ing man and acting Superintendent of Agencies, severed his con- 
nection with the company on January 26, 1882. He had resigned 
July 30, 1881, but at the solicitation of the Executive Committee 
remained until the date noted. 







u 



Beginning of Progressive Bra 209 

Mr. Buell was a valuable employee and his retirement was re- 
gretted. He still lives in Milwaukee, taking an active interest in 
the affairs of the company, of whose success he is ever proud. 

Official readjustments resulted in the appointment of Wil- 
liam H. Farnham, Assistant Secretary, and John W. Du Four as 
Assistant Cashier on January 28, 1882. 

Nothing short of the pen of a Dickens could do justice to a 
little incident that came to the notice of the compiler quite by 
accident and which belongs here in virtue of time. A certain 
Mrs. G. had insured in the company and her annual premium 
was $29.28. She had taken the insurance at a time when there 
were ampler prospects of being able to carry it, but reverses came 
and she was obliged to depend entirely upon wages earned at the 
washtub for support. In 1881, she had found it impossible to 
pay her premium and had given an extra note for as large a sum 
as the policy would bear. The premium came due again March 3, 
1882, and Mrs. G. came to the office for the first time with the 
true story of her condition in life; the sacrifices she had suffered 
in order to keep her insurance in force and the great sorrow that 
pressed upon her in consequence of being obliged to give it up. 
She told the officers that the sums already paid by her were made 
up of pennies, nickels and dimes segregated for the purpose and 
at times, too, when want pressed hard upon her. It was a pitiful 
case. Possibly the flippant statement that passes without thought 
that corporations have no souls may be true, but the fly leaf 
of an old memorandum book in the possession of the compiler 
of this history belies the statement. That vagrant leaf shows that 
a subscription was taken up in her behalf and that Mr. Keenan 
gave five dollars; Mr. McClintock, five; Major Lynch, C. H. 
Gezelschap and J. W. Skinner each five, making a total of twenty- 
five dollars. Mrs. G. had with her a little more than the balance, 
$4.28, and she went away with the receipt for her premium. The 
simple but sufficient note is appended to the entry made on that 
leaf that never was intended for public inspection : "She was very 
thankful." 

The legislature of 1882 enlarged the investment restrictions 
of the company to include county bonds among those it could pur- 
chase. (Chapter 204, Laws of 1882.) 

The duties of the Actuary having now become quite arduous 



210 Beginning of Progressive Era 

W. J. Doolittle, was appointed Assistant Actuary, July 26, 1882. 
Mr. Doolittle had been theretofore employed by the company as 
a special agent for a number of years. He held the office of As- 
sistant Actuary about four years, when he exchanged positions 
with Charles A. Loveland, then head of the Collection division. 
Mr. Doolittle remained in this position for some time when 
he was called into the Agency department, where he is now 
engaged. 

Charles B. Coe was appointed Assistant Superintendent of 
Agencies, July 1, 1882. Mr. Coe was born in Wisconsin, June 18, 
1842, and entered the employ of the company in a clerical capacity 
in March, 1869. He was afterward associated with the Indian- 
apolis general agency, but came to the home office on receiving the 
appointment in question. He caught a severe cold in 1884 and 
moved to Colorado. He was appointed General Agent for that 
territory October 18, 1884, and died there December 19, 1889. 

Charles B. Coe is held in loving memory by those connected 
with the Northwestern who knew him. His life was pure, gentle, 
honest. He left an impress on men and they believed in him. 
His influence was unbounded ; his ability great. He was a strong 
reasoner, an able debater and a finished writer. He was manly 
and courageous but gifted with the modesty, the gentleness and 
the tenderness of a woman. 

An old and well-known employee died August 13, 1882. This 
was A. B. Alden who began his career with the company as a 
solicitor on December 18, 1861, and worked as such until 1866. 
Later he was employed as a Special Loan Agent and so remained 
until the date of his death. 

William Beck, another old and well-known employee of the 
company, began work for it as a special investigator on Septem- 
ber 1, 1882, and remained in the employ of the company about 
ten years occupying a closely confidential relation with the officers. 
Mr. Beck is still living, at South Milwaukee, Wisconsin, and de- 
lights in telling of his interesting experiences while employed 
by the Northwestern. 

The Executive Committee in the annual statement for 1882 
was moved to say that the Northwestern was among the strong- 
est of all the companies of the country in the ratio of assets to 
liabilities and since 1873, the leader of them all as regards divi- 



1883 



Beginning of Progressive Era 211 

clends paid, while maintaining the highest reserve required, thus 
furnishing the best insurance at the smallest cost. 

On January 1, 1883, the assets were $19,794,671.93 and the 
surplus, $3,014,073.33. The income for 1882 was $3,795,837.82, 
of which $1,167,348.20 was for interest, which for 
the ninth straight year was more than enough to pay 
all losses and expense of management combined. 
There were 6,658 new policies issued in 1882, 
covering $15,918,150 of insurance and representing the largest 
amount of new business written by the company since 1870. The 
total amount of insurance in force on January 1, 1883, was 
$83,355,424 — an increase for the year of 3,380 policies and 
$8,851,684 insurance. 

The bulk of the investments of the company at this time were 
real estate mortgages, amounting to $14,330,286.86, and the other 
large items were: Premium notes $1,482,854.15; real estate 
$1,534,206.14, and bonds $1,246,631.54. 

The change in law already noted affecting the time for holding 
the annual meeting of the Trustees induced the adoption of a new 
by-law at the meeting of January 30, 1883, providing for stated 
meetings to be held on the fourth Wednesday of January and the 
third Wednesday of April, July and October in each year, that 
of the third Wednesday in July to be the annual meeting. A 
further meeting was also provided for, to be held on the Tuesday 
preceding the Wednesday of the annual meeting. This continues 
to be the rule at the present time. 

At the same meeting, the advisability of petitioning the Wis- 
consin legislature to enlarge the restriction imposed upon the 
company by limiting its holdings of general real estate to six 
years, without the official sanction of the Insurance Commis- 
sioner, was informally considered, but it was deemed inexpedient 
at that particular time to make the request. However, in 1885, 
the legislature passed an act (chapter 199) extending the time 
to ten years. 

Ex-Governor William E. Smith, of Wisconsin, died February 
14, 1883, and at the quarterly meeting of the Trustees held April 
18, 1883, resolutions respecting his demise were passed. Mr. 
Smith was a Trustee of the company from 1873 to the date of 
his death; was a member of the Executive Committee from 1874 



212 Beginning of Progressive Era 

to 1878 and some of the last days of his active life were spent on 
the Examining Committee. 

Although continuous examination of the voluminous records 
of the company becomes monotonous, there are occasional nota- 
tions that divert and entertain. Such a one was found under 
date of July 16, 1883, when by a vote of the Executive Commit- 
tee the officers were instructed to plow "the coming fall" 160 to 
200 acres of the M — farm in Mower County, Minnesota, then 
recently acquired by foreclosure. In the absence of specific in- 
formation, the presumption is that the officers did their duty. 

The first summer meeting of the Agents' Association occur- 
red July 17, 1883, to accord with the new conditions and import- 
ant subjects were discussed. 

So, too, the first annual election of Trustees in July occurred 
this year and on July 18, 1883, among those elected was B. K. 
Miller who served on various committees and took an active part 
in the duties appurtenant thereto, until September 12, 1898, when 
he died and was succeeded by his son, B. K. Miller, Jr., who was 
elected Trustee at a quarterly meeting held October 19, 1898. 

The auditor of the state of Iowa came to the company on No- 
vember 13, 1883, for the purpose of examining it and concluded 
his research almost on its twenty-fifth anniversary. He found 
the company in excellent condition. 

In closing the annals for 1883, it is gratifying to be able to 
record that in the literature issued that year it was announced 
that since its organization in 1858, the Northwestern had contest- 
ed for mis-statements in the application, but two policies that 
had been in force more than three years, notwithstanding its 
right under the terms of the policy to do so. 

The twenty-fifth anniversary of the organization of the com- 
pany having been passed on the twenty-fifth day of November, 
1883, the condition of its affairs on the first day of January 1884, 
will fairly represent the growth of one-half its 
working existence, making the comparison between 
then and now particularly impressive. 

From nothing but hope and courage and a will 
to do, and $200,000 of insurance in force, without assets, on No- 
vember 25, 1858, the company had advanced by January 1, 1884, 
to outstanding contracts of insurance amounting to $92,083,093. 



1884 



Beginning of Progressive Bra 213 

Its assets were then $21,115,321.43 and the surplus, $3,162,245.92. 

During the twenty-five years it had paid to the re- 
presentatives of deceased policyholders for 
death losses $11,372,729.23 

And to its living policyholders for dividends, ma- 
tured endowments, surrendered and lapsed poli- 
cies 20,276,345.15 

Total $31,649,074.38 

Add assets on January 1, 1884 $21,115,321.43 

Amount paid to policyholders and then held for 

them $52,764,395.81 

Total premiums received $45,261,145.12 

Excess of assets and payments to policyholders 

over premium receipts $ 7,503,250.69 

Still more interesting may be the fact that the business for 
the year of the twenty-fifth anniversary showed a decrease in the 
expenses and marked, for that single year over the preceding: 

A gain in insurance in force of $8,727,669.00 

A gain in assets 1,320,649.50 

A gain in reserve 1,158,939.00 

A gain in net surplus 148,172.59 

A gain in income 413,374.90 

A gain in premiums 389,063.69 

A gain in interest and rents 24,311.21 

A gain in payments to policyholders.... 83,479.62 

A gain in new insurance issued 861,354.00 

A gain in new premiums 57,219.26 

A gain in mortgage investments 1,378,015.12 

This twenty-fifth anniversary showing of the Northwestern 
was gratifying to its members and officers. It demonstrated be- 
yond all doubt that the institution which for a time had been ex- 
clusively identified with the west by virtue of location had come 
to be national, and that its business policies and management 
were settled upon a strong foundation. The Northwestern had 
always had the benefit of the highest available interest rate and 
when this changed a bit, the company's wonderfully low ratio of 



214 Beginning of Progressive Bra 

mortality more than balanced the loss, enabling it to keep up its 
exceptional dividends. 

Indicative of change in money conditions and as an incident 
in the development of this western country by 1883, it may be 
noted that on July 3, 1884 the Executive Committee, upon con- 
sidering the general demand for real estate loans and the then 
prevailing rates of interest, adopted a scale at which loans would 
be invited. Extra choice loans on business property in Chicago 
and Milwaukee would be negotiated at six per cent; first class 
business loans in St. Paul, Minneapolis and like cities, six and 
one-half per cent; all farm property as a rule seven per cent 
and extra choice farm loans in large amounts and with ample 
margin of value, six and one-half per cent. 

These figures were, of course, modified according to special 
conditions, but in the main, they continued to be the prevailing 
figures for about two years. 

A special investigation of the company's Chicago risks was 
made early in 1884, showing that out of all the Chicago mem- 
bership of 1,600 policies, carrying nearly $6,000,000 of insurance, 
only ten policyholders, representing $79,000, were deemed un- 
desirable by reason of intemperance or ill-health. 

A further experience of twenty-five years since that time has 
not changed conditions then disclosed. 

It will be recalled that in 1879, the State of Missouri had 
passed an act relating to foreign insurance companies, the objec- 
tionable provisions of which had been avoided so far as the 
Northwestern was concerned, by specially providing in the policy 
that the contract should be construed according to the laws of the 
State of Wisconsin, but because of the decision on that practice 
heretofore referred to and the insistence of the Commissioner of 
Insurance upon a periodical valuation of the company's policies, 
the officers considered it best to withdraw from the state. The 
company, therefore, retired from Missouri, December 1, 1884. 

Associated with this retirement came a chain of events par- 
ticularly interesting in the history of the Northwestern. The 
firm of Kimball & Libbey had represented the company at Green 
Bay, Wisconsin, until October 27, 1884, when Mr. Kimball was 
appointed General Agent for Missouri. November 28, 1884, the 
decision to withdraw from that state was made. 



Beginning of Progressive Bra 215 

About this time, Charles B. Coe was obliged to resign the 
position of Assistant Superintendent of Agencies on account of 
ill-health and Mr. Kimball was appointed, his duties beginning 
December 1, 1884. His official appointment was as Assistant 
Superintendent of Agencies for the Western department, with 
headquarters at Milwaukee. 

Alonzo Weston Kimball was born in Lee, Massachusetts, 
March 7, 1844. His youth was spent in Green Bay, Wisconsin, 
when after teaching school and studying law for a time, he be- 
came a partner in the insurance firm of Kimball & Libbey. 

Mr. Kimball served with marked ability as Assistant Super- 
intendent of Agencies until September 1, 1894, when he was 
appointed General Agent at Chicago, becoming associated with 
Charles Dyer Norton in 1902, the partnership continuing to the 
date of Mr. Kimball's death, March 29, 1905. 

Mr. Kimball was conspicuous in the affairs of the Northwest- 
ern. As a home office man, he brought to his duties many talents 
that made his services valuable, and as a field-man he had full 
opportunity to give sway to those marked characteristics which 
brought him leadership. He was productively industrious and 
consequently successful ; thoroughly interested in his work and 
confident of its grand mission; earnest to the point of constant 
enthusiasm and eloquent far beyond most men. He was a big- 
hearted, successful, sensitive and poetic American citizen, an 
inspiration and standard for many a young Northwestern em- 
ployee and agent. 

The first day of January, 1885, found the Northwestern with 
45,948 policies in force, representing $98,793,982 of insurance; its 
assets were $22,528,970.52, and its surplus was $3,521,006.37. It 
was steadily growing in all the essential elements 
and its business was running smoothly. 

A special meeting of the Trustees was held Jan- 
uary 28, 1885, and the office of Second Vice Pres- 
ident was created, the incumbent of which was made Superin- 
tendent of Agencies. Willard Merrill was elected at the regular 
meeting held the same day. 

The officers had been embarrassed for office room for some 
time when, at this meeting, the Executive Committee believing that 
the safekeeping of the securities, records, books and valuable 



1885 



216 Beginning of Progressive Era 

papers, as well as the convenient transaction of the company's 
business required a larger increase of vault and office room than 
could be secured in the building or on the site then occupied, 
recommended that the Trustees provide for the erection of a new 
office building as speedily as practicable. 

The Trustees took the proposition under immediate advise- 
ment and after listening to reports from the President, Actuary 
and Secretary decided upon the purchase of a site and the erec- 
tion of a new and suitable office building for the company. 

Offers of land for a new site were invited. Several prop- 
ositions were submitted and finally the site of the Newhall House, 
which was destroyed by fire on the night of January 10, 1883, was 
purchased. The premises are technically described as lots four, 
five and six in block numbered eight in the Third Ward of the 
city of Milwaukee, and measure one hundred and eighty feet on 
Broadway and one hundred and twenty feet on Michigan street. 

Just as soon as the new site was selected, the company had one 
of the most peculiar experiences of its existence. A few dis- 
gruntled citizens who could not realize that it was possible for a 
Wisconsin institution to attain to national prominence, began to 
protest against the project. They failed to realize the growth of 
the company and appreciated nothing of its pressing necessities in 
the way of vault and office space. They got up remonstrances ; 
made oral protests and finally went to the legislature with a bill 
to prohibit the erection of the proposed building. Naturally, no 
serious attention was paid to this opposition of a few, either by 
the general public, the legislature or the officers of the company, 
and in due time plans were submitted and accepted and the pres- 
ent splendid granite and sandstone office building was built. 

So rapidly was the work done that the Legal department was 
installed in the new quarters in April 1886 and the first policy 
(No. 146,082) was issued there July 19, 1886. 

At that time, it was thought the second floor would be ample 
to accommodate the officers and employees for many years, but 
gradually departments have branched out in all directions until 
nearly the entire building is now used by the company. Indeed, 
on the first day of May last, it became necessary to rent floor 
space in an adjoining building for the accommodation of a part 
of the clerical force. 



Beginning of Progressive Bra 21 7 

In connection with the history of this new building it is of 
interest to note that of the original force of employees placed in 
charge of it, one only remains in the service of the company. He 
is known to all agents, all policyholders and all tenants as well as 
the officers and employees. This is Carl Friedrich Christian 
Schultz, master of elevators, who helped install them and has gone 
up and down with them ever since. Robert W. Williams, a con- 
sulting builder at the time construction was in progress, soon after 
its completion came to the company as Superintendent of the 
building, and still remains. 

Early in 1885, the company had another of its periodical 
experiences with a legislative proposition to increase its taxes but 
managed by well directed argument and the general remonstrance 
of policyholders to keep the then existing rate unchanged. 

Sherburn S. Merrill, general manager of the Chicago, Mil- 
waukee & St. Paul Railway company, who had been a Trustee 
from 1869, died February 10, 1885, and resolutions concerning 
his demise are found in the records. 

A result toward which the Northwestern had been gradually 
but inevitably tending for twenty-seven years was reached on the 
thirty-first day of March when the company had $101,912,893 at 
risk. 

The question of employing an Assistant Medical Director 
came up for consideration before the Executive Committee on 
June 22, 1885, and a committee was appointed to fully canvass 
the subject and report. This committee reported at the meeting 
of November 12, 1885, advising the employment of such an 
officer and recommending John W. Fisher, M. D., who was 
immediately appointed. Dr. Fisher still remains with the com- 
pany as Medical Director and will be more particularly men- 
tioned in the chapter devoted to the Medical department. 

The agents who came to Milwaukee in 1885 were treated to 
the unusual experience of an excursion to Madison, the capital 
city of Wisconsin. That the event was duly appreciated is man- 
ifest from the following verbatim copy of the minutes of the 
agents' meeting of July 16, 1885 : 

"Accompanied by Mr. Keenan, Vice President; Mr. Merrill, 
Superintendent of Agencies; Dr. L. McKnight and Mr. J. L. Hatha- 
way, representing The Northwestern Mutual Life Insurance Com- 



218 Beginning of Progressive Bra 

pany, the journey was a constantly increasing delight, as the train 
sped on its way, now alongside silvery streams, and catching 
glimpses of placid lakes, now over beautiful, rolling prairies and 
through woodlands resplendent with the sheen of summer; now 
stopping for a moment at Waukesha, the famous Bethesda of the 
Northwest, and then on until we reach the lake surrounded capital, 
Madison, throned like a queen of beauty, unsurpassed for situation 
in all the broad commonwealth of the Badger state, and unequaled 
by an other city in America." 

Dinner was served and officers and others made felicitous 
remarks which were responded to by Governor Fairchild, Gen. 
Atwood and Hon. E. W. Keyes. Mr. Keyes still lives in Mad- 
ison ; is its postmaster and recently celebrated his eightieth birth- 
day anniversary. 

Tontine insurance was becoming the object of so much un- 
favorable comment by both the press and the public that in 1885 
legislative action resulted in state investigations. On April 15, 
1885, the Ohio legislature appointed an investigating committee 
and the members made pilgrimages to the home offices of several 
companies and took testimony on the points they desired to cover, 
to-wit : the amount of such insurance issued to Ohio citizens ; 
the amounts placed to the credit of their policies ; the mode of 
keeping tontine accounts and generally the methods of doing the 
business, and the manner of making credits upon policies, for the 
purpose of establishing a basis of taxation in Ohio. 

This committee visited the offices of the Northwestern July 
1885, and took the testimony of Emory McClintock, its 
Actuary, who gave the members the benefit of his knowledge of, 
and experience with, the tontine system. Judge Palmer was also 
invited to appear before the committee and he outlined the atti- 
tude of the Northwestern on the subject. 

The final report of the investigation was filed August 19, 1885, 
and was diplomatic. It admitted the good points and discussed 
the objectionable features without recommendations but in the 
course of the report took occasion to say : "There is somewhat 
of a mystery connected with the keeping of the funds, on the part 
of some * * * companies which intelligent book-keeping 
might be able to correct. The funds are consolidated in such a 
manner as to be confusing, until settlement day, when company 
officials divide as they deem expedient, and the policyholder and 



Beginning of Progressive Bra 219 

the public is expected to be satisfied. In pleasing contrast to this 
manner of doing business, the affairs of The Northwestern Mu- 
tual Life Insurance Company, of Milwaukee, present a clearness 
and conciseness and opcn-faccdncss, that is at once marked and 
praiseworthy. At any time the books of the company furnish a 
full and complete record of each individual policy, and it is fur- 
nished at any time upon application. Still, it amounts only to a 
difference of book-keeping, and no evidence was furnished the 
committee of corrupt diversion of funds, or intentional covering 
up, by any company which has been examined, of anything of 
interest either to the policyholder or the public." 



Acquisition of Second Hundred Million 



IT took the Northwestern twenty-seven years to put in force 
its first one hundred million of insurance, and less than five 
years more to duplicate the feat. 
This was due to the status of the business, the prosperity of 
the country and the nature of the company's contracts. Life 
insurance was no longer considered a luxury ; men had money 
with which to pay premiums and the Northwestern had liberal 
policies and could make convincing exhibits. 

There were those who connected, in some superstitious way, 
the new building with the beginning of the Northwestern's golden 
era, but the experiences of insurance companies during the past 
twenty-five years have tended to remove any suspicion of the 
mysterious in connection with the life insurance business. What- 
ever of success has come to companies has been the result of 
applied effort despite the most terrific odds that have ever been 
laid against any occupation, business or profession in the history 
of the country. 

The story of the acquisition of the second hundred million of 
insurance by the Northwestern will be included in the record of 
events of the years 18S6 to 1890. 

Without yielding to the pressure constantly brought to bear 
to extend its business into foreign countries or parts of our own 
country of less favorable mortality than the average, the com- 
pany materially increased its insurance in force at 
the close of 1885 and made corresponding gains in 
other branches of its business. 

A total of 8,667 new policies were issued, 
amounting to $22,577,186, bringing the grand total up to 50,100 
policies in force, covering $110,710,861 of risks. 

The assets January 1, 1886, were $24,265,256.56, every dollar 
of which was in substantial securities, of no doubtful nor fluc- 
tuating character. The bulk of it was in real estate mortgages 
amounting to $19,242,625.41. 



1886 




<o 



Acquisition of Second Hundred Million 223 

The surplus was $3,993,696.93. 

These figures, however, are not sufficiently impressive as they 
stand by themselves. The growth of the company leading up to 
them was so uniform and continuous that one hardly realizes 
what the total means. It is only by comparison that they attain 
to their real significance. 

Twenty years before 1886, the com- 
pany's assets were $ 906,420.22 

January 1, 1886, assets were 24,265,256.56 

Increase in twenty years 23,358,836.34 

Interest receipts in 1865, were 15,223.83 

In 1885 interest receipts and rents, were 1,319,184.32 

Premiums received in 1865, were 306,731.03 

Premiums received in 1885, were 3,785,045.20 

The loans made in 1865 were less than.. 100,000.00 
Those made in 1885, were 3,934,156.82 

The first meeting of the Board of Trustees in the new building 
was held July 20, 1886, and the day was made additionally 
memorable by the adoption of a resolution to the effect "that after 
the thirty-first day of December, 1886, the surplus arising in the 
fifth and succeeding policy years of any participating policy be 
allowed as a dividend on the usual conditions at the close of such 
years respectively, but that surplus arising in either the first four 
years be held a year as heretofore; it being the object of the 
change to retain the existing conservative system up to the end 
of five years from the date of each policy, and thereafter make 
returns of surplus as speedily as possible to the members from 
whose payments it may be found to arise." 

This meant that in 1887, all policies five years old would 
receive in addition to the regular dividend on the business of 1885, 
the dividend from 1886, making a double dividend; and that 
thereafter all policies when they should become five years old 
would receive on termination of the fifth year a double-dividend, 
thereby doing away with the second post mortem dividend on all 
policies reaching the age of five years. This was the beginning 
of the Northwestern's five-year-double-dividend system. 

The twenty-first day of July 1886 is noteworthy because at a 



224 Acquisition of Second Hundred Million 

meeting on that day the agents voluntarily took a decisive stand 
against rebating, long before legislation compelled an abandon- 
ment of the practice and at a time when it required fortitude to 
put on record the following : 

"WHEREAS, We believe the rebate system, practiced to a wide 
and deplorable extent by the representatives of the different life insur- 
ance companies, is a great and despicable evil, and demoralizing in 
the extreme to the profession of life insurance; therefore, 

"RESOLVED, That we will show our condemnation of this evil 
by emphatically denouncing it in every possible manner and doing 
all in our power, in action and influence, to overcome it." 

The twenty-first day of July 1886 was also reception-day at 
the new building and among the many who called to offer words 
of congratulation and cheer to the Trustees was a delegation of 
prominent Chicago business men. They were cordially received 
and with this simple ceremony the new office building was ded- 
icated. 

Words that have long served as an inspiration to young insur- 
ance solicitors were spoken on November 18, 18S6, by A. W. 
Kimball, Assistant Superintendent of Agencies, at Pittsburg, 
Pennsylvania, at the first annual banquet of the Life Underwrit- 
ers' Association of that city in response to "The Successful Life 
Insurance Agent," and the speech made such an impression that 
the officers of the company were importuned to distribute printed 
copies of it among its agents. 

The eloquent words of this Northwestern officer, spoken in 
response to an inspiration bred of intense interest, may well be 
read and enjoyed by members of the company today. 

The successful life insurance agent, Mr. Kimball contended, 
is the one who writes business that renews. He is serious as 
well as earnest in presenting his case, for he knows that men are 
not joked into life insurance. He represents the best company 
in the world but is magnanimous enough to admit that his com- 
petitors are possessed of some modest merit. He feels that the 
company is a factor in attracting the application. He does not, 
therefore, unduly magnify himself, nor overwork the "perpen- 
dicular pronoun." He does not apologize for his business, but 
believes his calling is as honorable and useful as that of any man 
who walks the earth. 



Acquisition of Second Hundred Million 225 

The successful agent does not give a portion of his time to 
other business. He feels that life insurance is entitled to and 
demands his entire talent and time. He recognizes the old 
injunction that he cannot serve two masters. He remembers 
that St. Paul said : "This one thing I do." He is not a genius, 
perhaps not a brilliant man. He does not, therefore, expect to 
float to success on the lazy wings of genius. It may be true that 
the life insurance agent is born, not made, but genius to him 
means study, tact, momentum, hard work. He knows that "an 
engine of one cat power, running all the time, is more effective 
than an engine of forty horse power standing idle." 

In closing his address, Mr. Kimball said that there were such 
agents and that when the first came to die, he thought some one 
would be honored to rise and speak of him these simple words : 

"He had his faults; but he was kind, just, patient, brave. He 
was a manly man, and he hated a mean thing. He hit hard, but he 
was always fair. His blows were those of Richard the Lionhearted; 
his honor was that of Regulus. 'His strength was as the strength 
of ten, because his heart was pure.' He did not think truth old- 
fashioned. He never forgot that his father taught him to be honest, 
and that his mother — God bless her — taught him to be courteous. 
He was a gentle man, and he 'wore without reproach the grand old 
name of gentleman.' Whatever he touched he honored and adorned, 
and wherever his hand had wrought there was found no stain. His 
life is a light; his character an inspiration; his memory a legacy. 
The great profession of life insurance is purer and nobler for his 
having been a member of the craft and because he lent to it the 
effulgence of his life." 

The first event of more than passing interest in the year 1887 
was the demand upon the Insurance Committee to establish a 
rule as to whether or not clergymen were to have the benefit of a 
reduction on premiums in consideration of their call- 
ing. The committee was obliged to preserve its 
general rule of mutuality and to place itself on 
record in favor of anti-discrimination by deciding 
that no commission or concessions should be allowed clergymen 
after January 18, 1887, except where an express agreement had 
been made prior to that time. 

The assets January 1, 1887, were $26,669,878.38; the income 
for 1886 was $5,870,797.07 and the surplus, $4,429,181.07. 



1887 



226 Acquisition of Second Hundred Million 

The new business written in 1886 was one-fourth larger than 
in 1885 and one-half larger than in 1884. During the year 11,358 
new policies were issued amounting to $28,082,620. The whole 
number of policies in force January 1, 1887 was 56,544 amount- 
ing to $127,629,903. 

This exhibit prompted the Milwaukee Sentinel to print, under 
date of June 26, 1887, a notice in the course of which it said: 

"It is the strongest of the ten largest companies. Its location 
enables it to secure the best and safest investments. It obtains by 
far the highest rate of interest. It experiences by far the lowest 
death rate. It is the only large company without a dollar loaned on 
fluctuating securities. Its dividends for fifteen years have been and 
are now larger than those of any other company. Its present assets 
added to past payments to policyholders exceed by nine millions of 
dollars the total amount received for premiums. It is a purely mutual 
company, in the true sense, and no officer, aside from a fixed salary, 
can receive or does receive any perquisite or per cent of whatsoever 
nature, except the dividends on his policies the same as any other 
member. The Northwestern is pre-eminently the policyholders' com- 
pany. Its Trustees are men of known business integrity and experi- 
ence, having no ambition for the company save to preserve and pro- 
mote its already assured greatness, to enlarge its usefulness and to 
administer its affairs so that no harm can be charged to their action 
or neglect. Its officers are all men of character and probity, of emi- 
nent fitness for their several stations." 

The legislature of Wisconsin enacted laws in 1887 that had 
an influence on the company. The first was chapter 319, author- 
izing the Commissioner of Insurance to prepare and furnish 
forms of annual statements. Originally these were simple, but 
sufficient ; since then, they have been enlarged upon until today 
they are formidable documents, and in many respects of ques- 
tionable utility. 

Another law (chapter 328) modified the original charter of 
the company by requiring a reserve not less than the aggregate 
net value of all outstanding policies, computed by the American 
Experience Table with interest not to exceed four and one-half 
per centum. It also permitted the company to loan on promissory 
notes, as well as bonds, secured by first mortgages on real estate, 
and ruthlessly tore away the original grant to married women to 
insure the lives of their husbands for their benefit. This right 
was practically restored in 1889 and confirmed in 1891. 



Acquisition of Second Hundred Million 227 

Alexander Mitchell, nationally known as president of the Chi- 
cago, Milwaukee & St. Paul Railway company, and a Trustee of 
the Northwestern from 1881, died in New York City April 19, 
1887, and at a meeting of the Trustees held April 20, 1887, a com- 
mittee presented resolutions on his death. Long before he 
became a Trustee, Mr. Mitchell had been warmly interested in 
the progress and welfare of the company and his counsel in its 
affairs was often sought and readily given. His son, former 
United States Senator John L. Mitchell, now deceased, was chosen 
his successor, July 20, 1887. 

Old residents assert that the first workable typewriter was 
perfected in Milwaukee and files of local papers are exhibited to 
prove the contention. Some of these contain the interesting story 
that C. Latham Sholes, claimant for the honor, presented his first 
model to Judge Palmer who was not then fully impressed with 
its commercial value. On May 21, 1887, however, the typewriter 
as a valuable working adjunct was installed in the offices of the 
Northwestern, where nearly one hundred machines may now be 
found, daily turning out their thousands of words and immeas- 
urably expediting the work. 

The legislature of Nebraska unwittingly embarrassed the com- 
pany for a time by an act approved March 31, 1887 (chapter 65) 
prohibiting any company not incorporated under the laws of that 
state from acquiring, owning, holding or possessing by right, title 
or descent, accruing thereafter, any real estate in the State of 
Nebraska. This seemed to prevent the company from getting 
title in case of foreclosure of Nebraska property mortgaged to it 
and, consequently, the Executive Committee adopted a formal 
resolution to cease making further loans in that state until the 
status of affairs had been more clearly defined. The Counsel 
visited Nebraska, consulted local attorneys and authorities and 
came to the conclusion that the law was unconstitutional in that 
it "contained more than one subject to be clearly expressed in the 
title." The making of loans was therefore resumed and at its 
next session the legislature hastened to rectify the mistake by 
excepting from the prohibition, property acquired by foreign cor- 
porations under foreclosure of a lien. (Section 4, chapter 58, 
Laws of 1889.) 

On October 13, 1887, the Executive Committee authorized the 



228 Acquisition of Second Hundred Million 

President to call a special meeting of the Trustees to consider a 
proposed amendment to the by-laws providing for a committee 
which should have general charge of investing and managing the 
company's assets. 

Such special meeting was accordingly called and held October 
19, 1887, when section ten of the by-laws was amended to provide 
for a Finance Committee of five Trustees, two of whom should be 
the President and Vice President, the other three to be chosen 
from the remaining members of the Executive Committee. 

The committee thus created still exists as one of the most 
important in the whole plan of the Northwestern. The members 
direct what loans shall be made and fix the terms and conditions 
thereof; determine all applications for the extension of the time 
of payment or other modification of the terms or conditions of 
outstanding loans; order the purchase of bonds or other securi- 
ties in which the company is authorized by law to invest its funds ; 
authorize the sale and conveyance of such real estate as may be 
owned by the company; direct the rentals and repairs of that real 
estate and generally do everything that is necessary for the in- 
vestment and management of the assets of the company. 

The members of the first Finance Committee were : President 
Palmer, Vice President Keenan, C. D. Nash, William P. Mc- 
Laren and G. W. Mitchell. 

J. W. Cattell, of Des Moines, Iowa, a member of the 
Board of Trustees, died September 25, 1887, and suitable resolu- 
tions upon his decease were adopted October 19, 1887. 

Judge Cattell was born June 25, 1820, and was elected to the 
Board of Trustees June 8, 1864, serving continuously for over 
twenty-three years. He was a member of the Examining Com- 
mittee in 1871, 1873 and 1874, for which duty he was admirably 
well qualified and his suggestions were always 
timely and wise. He was seldom absent from a 
meeting of the Board and was one of its most 
useful and worthy members. 

In the early part of 1888 the company was called upon to 
declare itself on charitable contributions. A policyholder from 
Atlanta, Georgia, had sent to the home office tickets to a local 
charity-ball and in returning them, the Actuary made the follow- 
ing manly declaration of the company's attitude : 



1888 




Members of the Executive and Finance Committees 

(Not Officers of the Company) 



II. F. Whitcojib 
E. J. Lindsay 



P. C. Winkled 



A. K. Hamilton* 
W. D. Van Dyke 



Acquisition of Second Hundred Million 231 

"We do not suppose you thought it possible that the tickets could 
actually be used by any one here, and hence presume that your letter 
is merely intended to ask for a contribution to a deserving charity 
in Atlanta. It is an unpleasant task at the best to appeal to others 
for contributions to any charitable object, and it is most natural that 
you should turn with some confidence to large corporations doing 
business in your city. A few words of explanation, however, will 
enable you to understand our reasons for declining to aid you. 

"Our company has often been asked for contributions to chari- 
table purposes, chiefly in this neighborhood. In no single instance 
has any such request been acceded to. The maxim was laid down 
many years ago, and has been adhered to strictly ever since, that it 
would neither be justifiable nor expedient to apply any part of the 
surplus funds to charitable purposes. It would not be justifiable, be- 
cause the company is a mutual life insurance company whose surplus 
funds consist of over-payments of premiums which under the charter 
are to be returned in dividends to its members. Even if it were justi- 
fiable, it would not be expedient, owing to the difficulty of deciding 
between conflicting claims. In no single instance, therefore, no mat- 
ter how pressing, has any contribution for such purposes been made 
by the company. 

"As you may suppose, individuals connected with the company 
are not under any such restrictions, and are accustomed to do what 
they can at their own cost. I take it for granted, however, that your 
appeal was not intended for the officers as individuals." 

No less uncertain was the expressed attitude of the company 
with regard to political contributions. 

In September 1896, an agent of the company in Iowa was 
asked by the chairman of the Republican congressional committee 
to solicit a contribution of $100 from the Northwestern in aid of 
the election for sound money. 

The reply of the Vice President, dated September 14, 1896, 
ten years before general public protest was made against such 
contributions, rings true as steel. After reciting the request, he 
wrote : 

"This company has never made a contribution of this sort. We 
have felt that we had no right to make a contribution in cases where 
a great disaster had overtaken a city or section of the country. We 
are aware that some companies have made contributions in some of 
these cases, but under our charter, and as we understand our duty, we 
have felt compelled to decline when requests have been made. There 
are both Democrats and Republicans on the official staff of the com- 
pany * * * and we do not feel at liberty to take part as a com- 
pany in any political campaign. Undoubtedly a large number of our 



232 Acquisition of Second Hundred Million 

policyholders believe in the free coinage of silver and they certainly 
would have a grievance if the officers of the company should con- 
tribute towards expenses in opposition to their views." 

The number of new members added and the amount of insur- 
ance written in 1887 were unprecedented in the history of the 
company up to that time, 13,009 policies and $32,125,955 being 
the figures. The assets on January 1, 1888, were $28,858,018.90 
and the surplus, $4,041,889.18. Six-sevenths of the assets were 
in mortgages on real estate. 

On February 21, 1888, James Douglass, of Hampden, Ohio, 
made application to the Northwestern for $1,000 of insurance pay- 
ing $13.68, the amount of the first semi-annual premium. He 
was six feet one inch in height, weighed one hundred and seventy- 
seven pounds, and had never had any serious illness. On Feb- 
ruary 23, 1888, he was taken sick with inflammation of the 
bowels and died eleven days later. 

In his application he stated that a sister had died of chronic 
pneumonia or consumption and that his father died of pneu- 
monia, "sick short time." On receipt of the application, the med- 
ical director wrote the Cleveland office : "We have application of 
James Douglass. Owing to his age and family history, we wish 
to know what the health of his father was prior to and up to the 
attack of pneumonia of which he is said to have died? Get 
applicant's signature to answer." 

When this letter was taken to Mr. Douglass he was delirious 
from disease and affidavits were obtained from his sister and the 
family physician, that the father, instead of dying of pneumonia, 
died of diabetes. This information was conveyed to the com- 
pany with the news of Mr. Douglass' death. 

On receipt of this information, the case was taken up and con- 
sidered in the same manner as other cases, and the facts war- 
ranting the action, a policy was promptly issued and the loss im- 
mediately paid, although a technical and reasonable excuse for not 
doing so, might easily have been devised. The company, how- 
ever, wanted to be entirely fair in its disposition of this unusual 
case. 

David G. Hooker, Counsel of the company, died March 24, 
1888. The President arranged with Charles E. Dyer, then Judge 
of the United States Court for the Eastern District of Wisconsin, 



Acquisition of Second Hundred Million 233 

to take office May 1, 1888, and the arrangement was perfected. 
The Trustees approved this action on July 17, 1888, when Judge 
Dyer was elected a Trustee, and at their meeting next day, was 
chosen a member of the Executive Committee and Counsel of the 
company, where he remained until the date of his death, Novem- 
ber 26, 1905. 

Charles E. Dyer was one of the strong men who have been 
associated with the Northwestern in its fifty years of existence. 
He was born in Cicero, New York, October 5, 1834, but in 1839 
the family settled in Burlington, Wisconsin. At the age of fif- 
teen, after receiving a rudimentary education, he engaged as a 
printer's apprentice in Chicago, and later became an expert in 
phonography. He began studying law in Sandusky, Ohio, in 
1 85 1, and was admitted to practice in 1857. Returning to Wis- 
consin, he located at Racine in 1859 anc ^ was appointed to the 
Federal bench by President Grant in 1875. 

Judge Dyer was a leader in the judiciary of the country. He 
was a man of great learning, a gifted writer and speaker, a most 
industrious worker and thoroughly judicial. To the office of 
Counsel of a great life insurance company, he brought all these 
talents, to which was added the attribute of extreme caution. 
With him, protection to policyholders was the paramount consid- 
eration and he molded his entire sense of duty to the company 
upon this line of thought. 

The day after his death, the Executive Committee put into its 
records the following tribute to his memory : 

"It becomes the painful duty of the Executive Committee to an- 
nounce the death, after an illness of four months, of the Hon. Charles 
E. Dyer, the Counsel of this company. 

"Judge Dyer came to the service of this company in May, 1888, 
having resigned the position of District Judge of the United States 
for the Eastern District of Wisconsin, which he had held with honor 
and distinction for a peorid of thirteen years. From that time to his 
end he has been the counsel, the legal guide and adviser, of this 
company. 

"The fidelity and conscientiousness, the acumen and sound judg- 
ment, and the industrious care which he brought to the discharge 
of this important and responsible trust could not have been ex- 
ceeded. He was ever watchful that in his department no harm should 
come to the company. His deep interest in the company did not 
confine itself to its material welfare, but was solicitous for its integ- 



234 Acquisition of Second Hundred Million 

rity and fair fame. Every vote he gave, every word he spoke in con- 
sultation, were moved by the consideration that these above all things 
must be kept unsullied. 

"Judge Dyer added to thorough learning in his profession the 
graces of a refined and generous scholarship. He delighted in lit- 
erature, he loved his books. His tastes were pure and cultivated and 
he possessed a marked felicity of expression. These with a noble 
generosity of sentiment, interspersed with bright wit, lent an especial 
charm to all his public utterances. 

"The warmth of his nature, his genial companionship for those 
with whom his work was done, are vivid in our memory and difficult 
of adequate protrayal. 

"A highminded and distinguished man, a noble character, the 
truest of friends, we part with him in deepest sorrow." 

Dr. E. J. Stone came to the company April 12, 1888, as 
Special Home Office Representative. Prior to that he had been 
a Medical Examiner for the company at Oneida, New York. Dr. 
Stone was appointed General Agent at Cleveland, Ohio, beginning 
January 1, 1908, and was succeeded as Home Office Representa- 
tive by Dr. Charles B. Piper, who resigned the position of Medical 
Director of the Minnesota Mutual Life Insurance Company to 
accept this position. 

John F. Makley was appointed Assistant Superintendent of 
Agencies of the Eastern department with headquarters at New 
York City, on September 8, 1888. Later, the practice of dividing 
the field into Eastern and Western departments was abandoned 
and headquarters were confined to the home office. 

The pernicious practice of rebating had long been recognized 
by life insurance companies as a menace to the business and desul- 
tory moves had been made against it without eradicating the evil. 
A long step in the right direction, however, was taken May 1, 1888, 
when the Life Underwriters Association of New York asked for 
concerted action on the part of companies against it. 

The Northwestern was one of the first to respond and at a 
meeting of company representatives held in New York City in 
July, President Palmer was appointed a member of a committee 
to formulate a general plan restrictive, if not prohibitive, of the 
practice. He attended a conference of the committee in October 
and the anti-discrimination idea was enacted into law the next 
year in New York and in 1891 in Wisconsin. (Chapter 267, 
Laws of 1891.) 



Acquisition of Second Hundred Million 235 

Since then similar laws have been generally adopted and the 
old practice has been substantially abandoned. The unequivocal 
position of the Northwestern in respect to the question was man- 
ifest in the resolution of its Executive Committee on July 17, 
1893, positively prohibiting any form of rebate by its agents under 
penalty of instant discharge. 

The year 1888 closed with a succession of events important to 
the Northwestern. Emory McClintock tendered his resignation 
as Actuary December 21, 1888 and, just a week later, it was 
accepted, to take effect January 1, 1889. At the same time, the 
Assistant Actuary was appointed to the vacancy. 

Charles A. Loveland, the new Actuary, was born in Troy, New 
York, October 3, 1841, and remained there until 1855, when he 
came to Milwaukee. He received his academic education in the 
public schools of West Troy, New York, and at the Milwaukee 
University. During the war he served three years in the Twenty- 
fourth Wisconsin Volunteers, and at Field Headquarters in Ken- 
tucky, Tennessee, Alabama and Georgia. Returning to Mil- 
waukee in 1867, he entered the law office of Palmer, Hooker & 
Pitkin, counsel for the company, and remained there studying law 
until May, 1870, when he came to the office as a clerk in the Col- 
lection division. In 1871, he was made head of that work, and 
became Assistant Actuary June 22, 1886. 

Mr. Loveland is a thirty-second degree Mason ; belongs to the 
Wisconsin Consistory and subordinate bodies ; is a member of the 
Actuarial Society of America and International Congress of 
Actuaries, and is affiliated with E. B. Wolcott Post, Grand Army 
of the Republic. 

The belief of the Northwestern that the practice of promotion 
is good business policy, is well exemplified in the case of Mr. 
Loveland. 

Charles N. Jones was appointed Assistant Actuary January 2, 
1889. Mr. Jones had come to the company July 1, 1888, accept- 
ing a position with the Agency department. Up to that time he 
had been a professor of mathematics at the state university of 
Michigan and had solicited life insurance in vacations. He was 
peculiarly fitted for the duties of his new position which he 
filled with credit until July 1, 1892, when he resigned to take a 
position in an eastern life insurance company. 



1889 



236 Acquisition of Second Hundred Million 

There were few noteworthy historical occurrences in 1889, 
outside the regular routine of business, but there were two deaths 
in the membership of the Board of Trustees that will be particu- 
larly noted since they had a direct bearing on the history of the 
company. The vacancies caused thereby were filled by men who 
have become prominently associated with the com- 
pany. 

In respect of business, simply, the new year 
emerged from a passing one that had marked the 
thirtieth anniversary of the company and had produced unequaled 
results. The life business was represented by 15,211 policies and 
$40,258,811 insurance, exceeding by more than $8,000,000 that of 
any previous year in the history of the institution. The whole 
number of policies in force on January 1, 1889 was 73,130 
amounting to $172,518,891, making the Northwestern the fourth 
largest company in the United States. In the essential elements 
of rate of interest on investments and low mortality, the North- 
western stood pre-eminent. 

Its assets January 1, 1889, were $32,672,811.36, of which the 
sum of $27,352,727.03 was represented by first mortgages on real 
estate valued at $87,031,077.77, and its surplus was $4,685,437.74. 

Guido Pfister, a Trustee of the company from June 8, 1864, 
died on February 2, 1889, and at the meeting of the Executive 
Committee held February 4, 1889, resolutions upon his decease 
were adopted. Mr. Pfister was a man of integrity, of great pub- 
lic enterprise, eminently successful in business and earnestly inter- 
ested in the welfare and advancement of the Northwestern. He 
was succeeded on the Board by General Frederick C. Winkler, of 
Milwaukee, who was elected at a stated meeting of the Trustees 
held July 16, 1889. 

General Winkler was born in Bremen, Germany, March 15, 
1838, and came to the United States in 1844. At the age of 18, 
he began the study of law in the office of Judge Palmer and was 
admitted to the bar at Madison, Wisconsin, in 1859. He began 
the practice of his profession in Milwaukee but in 1862 entered 
the army as captain of the 26th Wisconsin. He served until June 
28, 1865 and was brevetted Brigadier General. General Winkler 
has served as a Trustee since the date of his appointment and is 
a member of both the Executive and Finance Committees. 



Acquisition of Second Hundred Million 237 

News of the death of Trustee George Burnham came to the 
Executive Committee on March 4, 1889. Mr. Burnham was 
elected a Trustee of the company in 1870 and had served contin- 
uously to the date of his death, being at one time a member of 
the Executive Committee. 

At the special meeting of the Trustees above referred to, A. K. 
Hamilton, of Milwaukee, was elected to fill the vacancy and still 
serves, being at present a member of the Executive, Finance, and 
Real Estate Committees. Mr. Hamilton, who is a prominent busi- 
ness man of Milwaukee, has taken an active interest in Company 
affairs and besides serving on the committees named, has fre- 
quently been a member of the Examining Committee. 

The battle of printer's ink that the Northwestern's metropol- 
itan agent had in New York City in 1889, with some of the com- 
pany's eastern rivals, constituted an intense situation at the time, 
and officers of the company were drawn into the controversy 
through their own personal interest and the rule that a copy of all 
proposed published statements, documents and literature in which 
the company's name is to be used, must be first submitted to the 
home office. The incident is recalled now, not for the purpose of 
perpetuating a memory of the event, but to permit the statement 
that such controversies are fortunately at an end. 

The Northwestern has never boasted much of its bigness. 
True, its officers have referred to its wonderful growth with sat- 
isfaction, because bigness means business, not only in number of 
policies written, but in the countless ways that fol- 
low from expansion, but the officers of the North- 
western have laid greater stress on points which 
mean continued and increasing; benefits to members. 



1890 



On the first day of January 1890, when the business of the 
preceding year had been figured, the officers were pleased to note 
that, within the decade, the company's insurance in force had 
increased from $61,948,888 on January 1, 1880, to $202,405,923 
on January 1, 1890. While this was gratifying it was a prouder 
satisfaction that in the safety and profit of its investments, in the 
character of its selected membership and economy of management 
the Northwestern was excelled by no other company but held an 
acknowledged position in the first rank of life insurance insti- 
tutions. 



238 Acquisition of Second Hundred Million 

In 1889, there was an increase of 11,199 policies and $29,- 
887,032 of insurance. Loans on real estate during the year 
amounted to $6,069,272.34, making the total mortgage holdings 
$30,033,434.13. The assets on January 1, 1890, were $37,116,- 
870.31, and the surplus, $5,640,947.33. 

Early in April 1890, C. G. Harger, Jr., Agent of the company 
at St. Paul, Minnesota, wrote and published The Northwestern 
Mutual Life X. Y. Z. Primer which found general circulation 
among the agents and made its way into the hands of a goodly 
number of members of the company. The author called poetry, 
fable and conundrum to his aid and some of his conceits were 
clever and diverting. Each letter of the alphabet was the subject 
of a poetical comment such as the following : 

Lis for Life — and long may You live; 
Yet life's but a thread that may break, 
A vapor to vanish, a shadow to flee, 
A gift that the Giver may take. 
The tenure's uncertain, then do not delay, 
Insure in the NORTHWESTERN MUTUAL today. 

Nis for NORTHWESTERN, America's pride, 
A friend to the helpless and old; 
The widow, the mother, the young blushing bride 
Find relief from its treasures of gold. 
Remember, O man! in the day of thy health 
To secure for your loved ones a share in its wealth. 

Possibly two of the Harger conundrums may be timidly ven- 
tured. One is : Why is the Northwestern like a mischievous 
schoolboy? Answer: Because it is the greatest Badger of them 
all. * * * The other : The name of what tree suggests a 
person who should at once take a Northwestern policy ? Answer : 
Yew. 

On the second of April 1890, the sale of the company's former 
office building, for which it had no further use, to Daniel Wells, 
Jr., for $200,000 was authorized 

At a special meeting of the Trustees held July 15, 1890, new 
by-laws were adopted denning more fully the functions of various 
officers and committees ; providing for a new officer to be known 
as the Second Assistant Secretary and outlining the method of 
making real estate loans, that obtains with the company to the 



Acquisition of Second Hundred Million 239 

present day. P. R. Sanborn was appointed to the office thus 
created. The Second Assistant Secretary was designated as the 
principal officer in charge of the Loan department and was given 
authority to sign loan checks and legal documents. 

Notice of the death of Major John H. Rountree having been 
formally presented to the Trustees on July 15, 1890, resolutions 
in respect of his demise were placed of record. Major Rountree 
tvas one of the original incorporators of the company and remained 
a Trustee to the date of his death, a period of thirty-three years. 
He always manifested an unabated interest in the affairs of the 
company and in his death the Trustees recognized "that an hon- 
ored and venerable citizen of the state had passed away; a tried 
and faithful veteran had fallen from their ranks ; an honest man 
had closed a life of useful service and the Board had been deprived 
of one of its most highly esteemed members." A biographical 
sketch of Mr. Rountree will be found among those of the incor- 
porators of the company. 

In 1890, due to the foresight and initiative of A. W. Kimball, 
then Assistant Superintendent of Agencies, the company first 
issued, in pamphlet form, testimonial letters from prominent pol- 
icyholders under the title "Over Their Own Signatures." This 
was one of the most satisfactory productions ever issued by the 
Northwestern and being subsequently enlarged and printed in book 
form, ran through six more editions, totalling thousands of copies. 
Indeed, it was such an attractive and convincing document that on 
its initial appearance, those whose names were in the pamphlet 
were besieged with literature from other sources, calling for an 
explanatory and reassuring circular on the part of the company. 



Decade of Remarkable Growth 



THE business policies of the Northwestern had become so 
well settled and the working forces so thoroughly organ- 
ized by 1 89 1 that epochs and crises no longer punctuated 
distinctive periods in its history. 

It had passed through depression, panics and competition and 
had emerged with continuing success and progress. 

For the sake of convenience, however, the events of the decade 
from 1891 to 1901 may be considered in a separate section, show- 
ing within that time an expansion from an institution with 
$200,000,000 of insurance to one that carried over $500,000,000 
of insurance in force, notwithstanding conditions leading up to 
the panic of '93 and the financial disturbances that followed. 

When the officers came to make their annual report for 1890 
they were enabled to show a gain of more than $10,000,000 in 
new business over the preceding year, representing a surplus in 
premium receipts of over $400,000. The mortgage 
loan account had increased over $5,000,000; the 
assets, $5,237,042.65 and the surplus, $891,377.65. 
The total amount of insurance in force January 



1891 



1, 1891 was $238,908,807; the assets, $42,353,912.96 and the sur- 
plus, $6,532,324.98. Up to that date the company had paid out 
for death losses alone, the total sum of $21,055,600.07. 

The Trustees' records for 1891 bear more memorial resolu- 
tions than any other year in the history of the company. At the 
January meeting, the death of Henry K. Ellyson, of Richmond, 
Virginia, which occurred November 27, 1890, was noted. Mr. 
Ellyson, who was president of one of the most important educa- 
tional institutions of Virginia and publisher of one of the leading 
newspapers of Richmond, was elected Trustee July 18, 1888, and 
thereafter, to the time of his death, manifested an earnest interest 
in the company. 

Between the date of Mr. Ellyson's death and the date of the 
quarterly meeting of July 15, 1891, four other Trustees of the 



Decade of Remarkable Growth 243 

company died. These were: Henry Hastings Sibley, William 
Grant Fitch, John Lawler and John Plankinton. 

Henry Hastings Sibley, first governor of the State of Minne- 
sota and a man prominent in the civil, political and military life 
of the northwest, died at his home in St. Paul, February 18, 1891. 
He was elected a Trustee October 13, 1875, and so remained until 
the date of his death. 

William Grant Fitch, of Milwaukee, died February 3, 1891, 
after a long illness. He located in Milwaukee in 1855 and entered 
the bank of which he subsequently became vice president and 
which brought him prominence. He was a careful adviser and a 
safe man. He was elected Trustee July 15, 1885, and was in 
office at the date of his death. 

John Lawler, of Prairie du Chien, Wisconsin, capitalist and 
man-of-affairs, departed this life February 24, 1891. Mr. Lawler 
was first elected Trustee June 2, 1862, and served until April 7, 
1868. He was re-elected January 25, 1882, and was in office 
when he died. His son, Thomas C. Lawler, who subsequently 
removed to Dubuque, Iowa, was elected his successor and became 
thoroughly in touch with the company by virtue of his frequent 
service on the Examining Committee. He died April 17, 1908. 

John Plankinton, the prominent and wealthy packer, whose 
home was in Milwaukee, died March 29, 1891. Mr. Plankinton 
entered the Board in 1868 and was constantly a member until 
his decease. 

Mr. Plankinton was one of Milwaukee's most enterprising 
citizens. His great wealth was directed to the upbuilding of the 
city. He invested money in improvements which appeared to be 
decades ahead of the city's growth. His judgment was justified 
and success attended his every effort. Being a man of large 
affairs, his advice was of material assistance to the officers of the 
company. 

Again, at the quarterly meeting held October 21, 1891, the 
Trustees were called upon to deplore the death of William M. Sin- 
clair, a member of the Board from Philadelphia. Mr. Sinclair, 
then a resident of Milwaukee, was first elected Trustee June 10, 
1863 and on June 8, 1864, was elected Vice President. He 
served until January 10, 1866 and in 1867 retired from the Board. 
He was re-elected in 1890 and remained a Trustee until his death. 



244 Decade of Remarkable Grozvth 

To the long death record for 1891, must also be added the 
name of Jerome I. Case, of Racine, Wisconsin, the noted thresh- 
ing-machine manufacturer, who died December 22, 1891. Mr. 
Case was elected Trustee June 4, i860 and continued in office 
until his death. During the thirty-one years he thus served the 
company, Mr. Case was a working Trustee, giving the company 
the benefit of his large business experience. 

John Johnston, of Milwaukee, a prominent Trustee of the 
company, was first elected July 15, 1891, but subsequently re- 
signed. He was re-elected April 21, 1897 and on July 21, 1897 
was made a member of both the Executive and Finance Com- 
mittees, serving until the date of his death, June I, 1904. 

The Insurance Commissioner of North Dakota sent his actuary 
to examine the company in the summer of 1891. Upon this 
investigation Hon. A. I. Carey, the Commissioner, announced, 
under date of August 4, 1891, that from the actuary's report and 
his own personal inspection he found the company in every way 
satisfactory; the securities to be of the very best, assuring the 
policyholders absolute safety from possible loss ; the manner in 
which dividends were credited, entitled to hearty approval, and 
the company in its entirety worthy of recommendation as a solid 
and fair-dealing institution. 

Members of the company will no doubt pardon the pride with 
which the officers admit into the permanent record the disinter- 
ested and unsolicited judgment of one who had occasion thor- 
oughly to test the Northwestern. The following letter is from 
Julius L. Clarke, formerly Insurance Commissioner of Massa- 
chusetts : 
"Samuel T. Crosby, Esq. "Boston, Mass., Sept. 10, 1891. 

Dear Sir: Recalling our recent conversation relative to the finan- 
cial status and business management of The Northwestern Mutual 
Life Insurance Company (mutual, too, in the best sense), I am 
prompted to add that in all my long actuarial experience, part of which 
included my nearly eleven years as Insurance Commissioner of Massa- 
chusetts, I found no company more worthy of the confidence of its 
policyholders, or more careful and judicious in its monetary invest- 
ments, as also in other financial matters most essential for their 
interest and protection — words fully verified by my own personal, pro- 
longed and searching investigation. Sincerely yours. 



Decade of Remarkable Grozvth 245 

Julius L. Clarke was Commissioner of Insurance of Massa- 
chusetts from 1869 to 1875 and again from 1879 to 1883. In the 
interim between his first and second terms (in 1877) he partici- 
pated in the first comprehensive examination of the company, and 
subsequently took part as actuary in other examinations. He was 
removed from office by Governor Ben Butler on unsustained 
charges, but while he served, made Massachusetts prominent in 
the insurance world. He died November 21, 1907, in the ninety- 
third year of his age. 

On the morning of December 17, 1891, at the National Sol- 
diers' Home in Milwaukee, of which he was then governor, Col- 
onel John L. Hathaway died of a stroke of apoplexy. Colonel 
Hathaway was born in western New York in 1831 and attended 
West Point, but was obliged to give up on account of ill-health. 
He joined the army during the war and was mustered out with 
the rank of Lieutenant-Colonel. He came to the company in 1881 
as head clerk in the Real Estate department and remained until 
his appointment as governor of the Soldiers' Home May I, 1891. 

A distinctive feature of 1892 was the earnest consideration by 
officers of proposed plans to make the Northwestern contract 
more attractive to insurers. Committees gave many days of 
thoughtful study to the various proposals, recom- 
mending a number of important changes in the plan 
of popularization, some of which were adopted and 
others rejected, and the net result of which will 
appear in the special chapter devoted to that purpose. 

The method of carrying on the business of life insurance 
attracted public and official attention in the east in 1891 and the 
investigation of one of the largest companies centered much inter- 
est in the affairs of all. 

The new business issued in 1891 was double that of 1887 as 
regards amount and nearly twice as large in respect of numbers. 
In 1887, there were issued 13,009 policies insuring $32,125,955, 
whereas in 1891, 25,935 new policies were issued, involving 
$64,605,382 insurance. 

The real estate loans of 1891 were larger than in any previous 
year of the company's existence, the total amount being $10,284,- 
024.22. January 1, 1892, the assets were $48,826,755.45; total 
insurance in force, $275,674,753, and surplus, $7,891,790.55. 



1892 



246 Decade of Remarkable Growth 

On February 29, 1892, Joseph R. Dyer was appointed Assist- 
ant Counsel by the Executive Committee. 

Joseph R. Dyer was born in Racine, Wisconsin, October 7, 
1862, and was educated in the public schools of that city and at 
a private academy conducted by John G. McMynn, then one of 
the most prominent educators of the northwest. Mr. Dyer was 
admitted to the bar in January 1886, and began the practice of 
law in Racine, continuing until he came to the company as Assist- 
ant Counsel, which position he now holds. 

By the terms of a revision of the by-laws of the company 
adopted by the Trustees April 20, 1892, the membership of the 
Finance Committee was increased to seven, and that of the Exec- 
utive Committee to nine. The latter has since been increased 
to ten. 

The company received the first contribution to its "conscience 
fund" on May 25, 1892, in the shape of a letter from Chicago, 
enclosing $15 without any explanation. On March 4, 1903, a 
letter came bearing the Boston postmark, enclosing a draft for 
$173 payable to the order of J. W. Skinner, Secretary, drawn by 
the Blue Hill National Bank, of Milton, Massachusetts, on the 
National Bank of Redemption, of Boston. A note accompanying 
the remittance merely said that it was "conscience money due the 
company." On January 10, 1905, a ten dollar bill was received 
in an envelope marked "conscience fund," from Chicago. On 
March 15, 1906, a twenty dollar bill was received from St. Peters- 
burg, Florida, and about the same time an unsigned and unidenti- 
fied letter came to the company with $8 in it. This also went to 
the conscience fund. 

June 6, 1892, the resignation of Charles N. Jones, Assistant 
Actuary, was accepted and James C. Crawford was appointed. 

Charles D. Nash, one of the men who with Henry E. Palmer, 
S. S. Daggett, E. B. Wolcott and M. S. Scott went out to Janes- 
ville March 7, 1859, and transplanted the company to Milwaukee 
and who had been most intimately connected with the institution 
as Trustee, Treasurer, member of its Executive and Finance Com- 
mittees, Superintendent of its new building and member of count- 
less special committees, resigned his office as Treasurer on Octo- 
ber 19, 1892, and was succeeded by Charles Ray, a prominent 
banker of Milwaukee. 



Decade of Remarkable Growth 247 

On the night of October 28, 1892, a house burned in the town 
of Romeo, Wisconsin, and shortly thereafter the local newspapers 
contained the sensational story of the terrible death of Ferdinand 
J. Thrun and the finding of bones among the ruins of his home. 
Thrun had operated saw-mills in the vicinity as a means of liveli- 
hood but had burned out four different times and finally was 
forced to take a job as filer in another mill. Notwithstanding, 
Thrun was enabled to pay for $44,000 worth of life insurance 
shortly before the date of this last fire and explained his ability 
by saying his wife had been told in a dream where a fortune of 
$30,000 was hidden, which she had subsequently found. He had 
$10,000 in the Northwestern. 

There were so many suspicious things connected with this case 
that an investigation was started, resulting in the arrest of Thrun 
in New Orleans. He made a complete confession in which he 
charged the entire scheme upon a man who induced him to take 
the insurance and who furnished the money. It had been 
originally planned that Thrun should disappear from a lake 
steamer. He was to buy two sets of tickets, one under a ficti- 
tious name and the other under the name of Thrun. He had 
been provided with a false make-up and the plan was to have his 
confederate make a cry about a man overboard after he had 
thrown away the disguise. This contrivance was to raise the 
presumption of death; but it was not sufficiently conclusive for 
the advising conspirator, so the fire was arranged. In his con- 
fession Thrun said he knew nothing about this arrangement, but 
it is noticeable that he could not have acted his part better with 
full knowledge. In the absence of his wife, two friends were 
invited to stay at his home. Early in the morning, all were 
aroused by the flames. The guests began helping Thrun move 
the furniture from the parlor and were busily engaged in the 
work when he told them something about going back into the 
house for some school-books and money. They saw him enter 
the burning building but did not see him return. The charred 
bones found in the ruins next day were naturally supposed to be 
those of their host. 

It seems that upon entering the house Thrun immediately ran 
to a side window, climbed diligently out and was dumbfounded 
to be picked up by a man in a wagon. He was taken to a neigh- 



248 Decade of Remarkable Growth 

boring house, provided with food and afterward smuggled out of 
the country. Later, he was sold out by the man who had planned 
the scheme. 

The Thrun case was by no means the omy one or attempted 
fraud on the company. As early as 1870, the possibilities had 
begun to dawn on shrewd minds and life insurance companies 
seemed easy game for scheming purposes. 

The company issued a policy October 19, 1870, for $8,000 on 
the life of Moses Elliott, of Portland, Oregon, a lumberman 
twenty years of age. 

While working a raft of lumber down the Columbia River 
June 24, 1871, the insured was reported to have fallen into the 
water and drowned. The body was not recovered, but evidence 
was furnished that owing to the swift current and to obstructions 
in the river, bodies were seldom recovered there after drowning. 
October 1, 1873, the company paid to Jeremiah Elliott, father and 
assignee of the insured, the sum of $7,931.97, the face of the 
policy less premium due. Shortly after this, Jeremiah Elliott 
went to Jackson County, Oregon, where he purchased a sheep 
ranch. Within a short time thereafter, one Frank Williams made 
his appearance in the vicinity. At first he kept to the mountains 
and followed hunting, but finally herded sheep with and for the 
Elliotts, claiming to be a cousin of the Elliott boys. Suspicion 
was aroused as to the identity of this Frank Williams, who had 
lost the two middle fingers of his right hand just below the middle 
joint, as had Moses Elliott, and after investigation the company 
became convinced the two were identical. 

The company brought suit September 30, 1879, to recover the 
money from the father and to subject the ranch to the satisfaction 
of any decree obtained against him. The day the process was 
served on Jeremiah Elliott, the person known as Frank Williams 
disappeared. 

On the trial, the court characterized the transaction as "a 
deeply concocted, deliberate, gross and most wicked fraud." 
Judgment was rendered in favor of the company for the amount 
paid on the policy, with interest from October 1, 1873, and costs, 
amounting to $13,000. The ranch was sold to satisfy the decree. 

On or about December 14, 1880, the company issued a policy 
for $15,000 on the life of Charles H. Lucas, a dealer in hats and 



1893 



Decade of Remarkable Growth 249 

caps at Evansville, Indiana. Lucas was the tool of Julius A. 
Coleman, a then prominent young attorney of Evansville, who 
provided him with a wife, the money with which to pay premiums 
and a rubber suit to wear when he fell overboard from an Ohio 
River steamer. In due time, Lucas disappeared from the steamer 
but there were too many in the plot and confessions were liber- 
ally made to the investigator. The conspirators were jailed and 
the fate of Coleman was particularly pathetic. After serving a 
part of his two years' sentence in the penitentiary he escaped and 
wandered about for four years when he voluntarily surrendered 
himself to the authorities that he might serve out his sentence and 
thus earn his freedom. 

There was nothing in the business experience of the company 
in 1892 to presage the depression soon to follow, for the records 
show larger results than in any preceding year. Not only was 
the volume of new business (26,473 policies and 
$66,582,103 insurance) greater than was ever be- 
fore written in a single year, but both the assets and 
surplus showed larger gains over any previous year. 
On January 1, 1893, the insurance in force aggregated $312,- 
512,603, the assets amounted to $56,236,089.12 and the surplus 
was $9,467,384.54. 

Calvin B. Skinner, a prominent attorney, of Watertown, Wis- 
consin, who became an agent for the company in 1865 and was 
elected a Trustee January 31, 1872, died February 26, 1893. Mr. 
Skinner was born October 10, 1828. He served six years on the 
Examining Committee of the company and remained on the 
Board until the date of his death. 

His services on the Examining Committee were especially 
valuable. He was faithful and earnest in his attention to all the 
interests of the company. His counsel and judgment were highly 
esteemed. 

On March 25, 1893, George E. Copeland, who for many years 
had been one of the company's general agents with headquarters 
at Davenport, Iowa, was employed at the home office in the 
Agency department. While not engaged for that work, he sys- 
tematized the purchasing department, starting it on the basis on 
which it has since been conducted and improved by Mather D. 
Kimball, the present efficient purchasing agent. 



250 Decade of Remarkable Growth 

In 1893 the Northwestern joined with nearly all the other life 
insurance companies in the country in aid of the Life Insurance 
club that was established in Chicago during the World's Fair for 
the convenience of life insurance agents visiting the exposition, 
providing a place for general conference, correspondence and 
other accommodations. The quarters were in the Masonic Temple. 

It was apparent early in the year that the limitations placed 
by law upon the company as regards its investments needed en- 
largement and on February 21, 1893, the Executive Committee 
requested the Counsel of the company to prepare a bill for that 
purpose and submit it to the legislature. This led to chapter 115 
of the Laws of Wisconsin for 1893, which provides that every 
domestic insurance company "may invest its funds in stocks or 
bonds of the United States, or of any county, incorporated city, 
town or village, or duly organized school district in this state, or 
in mortgages being first liens on real estate worth at least twice 
the money loaned thereon, or in the first mortgage bonds of any 
railway * * * ; also loans on the security of promissory 
notes, amply secured by the pledge of any of the bonds in which 
such insurance corporations are hereby authorized to invest their 
funds ; and every such insurance corporation may not only loan 
its policyholders sums not exceeding one-half the annual pre- 
miums on their policies, upon notes to be secured by the policy of 
the persons to whom the loans may be made, but may also make 
loans upon the security of its own policies, to an amount not 
exceeding ninety-five per cent of the cash surrender value of 
each such policy at the time of making any loan; and such insur- 
ance corporation may invest its surplus funds in other states on 
like securities and under the same restrictions as in this state." 

This law was amended by chapter 263, Laws of 1905, to 
authorize investments in first mortgages on real estate whether 
held in fee, or as leasehold running not less than twenty-five years, 
or in fee subject to leasehold ; also in street railway bonds. 

It will be observed that the company is not authorized to buy 
private or corporate stocks of any description, but is restricted 
to investments of (a) bonds of undoubted security; (b) first 
mortgages on real estate worth double the amount loaned; (c) 
promissory notes secured by pledge of bonds in which the com- 
pany is authorized to invest; and (d) loans on the security of its 



Decade of Remarkable Growth 251 

own policies. The company has never made any collateral loans 
authorized by subdivision "c" above noted. 

The Northwestern points with gratification to its record on 
rebates, for it was among the first to denounce this objectionable 
practice. 

July 25, 1893, the following circular was sent to every agent 
of the company: 

"On February 1, 1893, a circular was issued to all agents living in 
states where Anti-Rebate laws exist, positively stating that any agent 
who thenceforth should be guilty of rebating could no longer write 
applications for this company. To this the following postscript was 
added: 'We hope soon to make this letter general in all states and 
among all our agencies.' 

"The position of this company against rebating has long been 
known. Prior to the passage of any law on the subject the North- 
western disapproved of rebating because it was unjust, vicious, and 
demoralizing. I have before me a circular to agents dated December 
9, 1886, in which I closed with the following language: 'We cannot 
too strongly state our disapproval of giving away commissions.' 

"I write now to say to you all that on Monday, July 17, the Exec- 
utive Committee of the Northwestern adopted the following: 

"'WHEREAS, on February 1, 1893, official notice was given by 
the Second Vice President and Superintendent of Agencies of this 
Company in all states in which laws against rebating on life insur- 
ance premiums exist, to the effect that any agent thereafter guilty 
of rebating in any form could no longer write applications for this 
Company; and 

"'WHEREAS, this Company has always disapproved of rebating 
regardless of any state law prohibiting the same, be it resolved that 
the Second Vice President and Superintendent of Agencies be and 
he is hereby empowered at once to make the rule general in all fields 
where this Company is operating.' 

"It therefore becomes my duty to announce to all agents working 
for the Company, that any agent hereafter proved guilty of rebating 
or of directly or indirectly giving away commissions can no longer 
write applications for the Northwestern. 

"It is not necessary to discuss this important matter in a circu- 
lar. This is sent promptly after the Annual Meeting to notify all 
agents of the Company's position and to advise them of the im- 
portance of their harmonious action in line with the Company's rule. 
We are confident that a strict compliance with this rule will cause 
our Company to be respected everywhere, and that our agents will 
not only more thoroughly respect their Company and their profession, 
but that at the end of each year they will absolutely find they have 
made more money. After an enthusiastic consideration at the last 



252 Decade of Remarkable Growth 

Annual Meeting, the Agents' Association, by a unanimous rising vote, 
pledged their loyalty to the Company's position against rebating in 
the following resolution: 

" 'RESOLVED, That we, the agents of The Northwestern Mutual 
Life Insurance Company, heartily and cordially endorse the action 
of the Company in relation to rebates, and we hereby unanimously 
pledge our loyalty and fidelit}' to the principle that Northwestern 
policies shall bear but one price, wherever sold, and that price PAR, 
from Maine to Texas, and from Massachusetts to California.' 

"We sincerely trust that our Company's position in this most 
important matter may be followed by other companies, and that the 
time is not far off when rebating will be entirely wiped out and 
known only as a thing of the past. 

"This letter is sent every agent working for the Northwestern, 
and is peremptory and final to all without exception, but we ask as a 
matter of record from every agent, both general, special and local, an 
immediate response to this circular, pledging a strict compliance with 
the Company's rule. 

"Hoping soon to hear from you, I remain, 
"Yours very truly, 

"WILLARD MERRILL, 
"2d Vice President and 

"Superintendent of Agencies." 

This circular immediately followed the action of July 24, 1893 
by the Executive Committee : 

"It is hereby declared and established as a rule and regulation of 
this Company, that no Agent of the Company shall hereafter allow or 
offer to pay or allow any rebate of premium, payable on any policy 
issued or proposed to be issued by the Company, or any rebate of 
Agent's commissions on such policy; nor shall he offer or permit any 
distinction or discrimination in favor of individuals between insur- 
ants of the same class and equal expectation of life in the amount or 
payment of premiums or rates charged for any policies of life insur- 
ance issued by this Company, or in the amount or payment of Agent's 
commissions on account thereof; nor shall any Agent make any con- 
tract of insurance or agreement in relation thereto, other than as 
plainly expressed in the policy issued thereon; and every Agent shall 
collect from every person in whose favor a policy is issued by this 
Company, the full amount of premium named therein." 

This rule has been consistently and rigidly enforced. 

At a stated meeting of the Trustees held July 18, 1893, 
Dwight Durkee, of St. Louis, president of the Exchange Bank, 
tendered his resignation as Trustee and the same was reluctantly 
accepted. Mr. Durkee was elected a Trustee of the company 



Decade of Remarkable Growth 253 

January 25, 1871 and served continuously for over twenty-two 
years. He was a member of the Examining Committee from Oc- 
tober 1874 to January 1882, with the exception of the year 1875. 
Resolutions of regret at his resignation and appreciation of his 
services were adopted by the Trustees July 19, 1893. 

The office of Third Vice President was created by the Trus- 
tees July 18, 1893, and William P. McLaren was elected to the 
office. 

One of the most important events of 1893 was the rescission 
of the resolution adopted by the Executive Committee November 
25, 1874, as to methods of charging taxes, and providing for 
their payment out of the general fund, as stated in that part of 
this work relating to the year 1874. 

The year 1893 was a memorable one in the business history of 
the country. Houses that had at other times been tempest-tossed 
on the seas of finance and had ridden the storm, battered but 
intact, went down under the whirlwind and it is said 
there were four thousand more failures than in any 
other year in the history of the country. Over one 
billion dollars of railroad property alone went into 
the hands of receivers, but not one single regular life insurance 
company failed or even wavered in meeting its obligations. 

Where life insurance companies did feel the paralyzed condi- 
tion of business affairs was in the amount of new insurance writ- 
ten in 1893. Up to this time the Northwestern had been making 
gains, but when the business was figured early in 1894, it was 
found that there was a loss of nearly eighteen million dollars in 
new business as against the year 1892. Most of the other com- 
panies showed a corresponding decrease. 

Naturally the business conditions existing the greater part of 
1893 made it impossible to write as many policies as usual with- 
out a large increase in expense and a resort to what are known as 
high pressure methods. Besides, the pronounced position taken 
by the company and its agents in 1893 on the subject of rebating 
undoubtedly had an effect, and added to this, leading competitors 
not only increased salaries of agents but offered guaranties, 
bonuses or anything else that promised returns. 

The Northwestern, on the contrary, adhered to its conserva- 
tive methods and refused to adopt extravagant and objectionable 



1894 



254 Decade of Remarkable Grozvth 

ones to get business. Notwithstanding, it wrote more insurance 
than it had written in any one year, prior to 1890. 

In the face of disappointment at results, the agents considered 
conditions at their annual meeting in 1894 and caused the follow- 
ing loyal resolution to be adopted: 

"RESOLVED, that we, the agents of The Northwestern Mutual 
Life Insurance Company in annual meeting assembled, desire to 
record our gratification at the results accruing from the position of 
the Northwestern on the question of rebates and the faithful adher- 
ence of the Company's agents to that high plane of business methods, 
and we hereby re-affirm our respect and loyalty to the Northwestern's 
principle of a legal and in every way just business." 

As a matter of fact, the company wrote 20,943 new policies 
in 1893 covering a total insurance of $48,677,771 and representing 
a difference from 1892 of 5,530 policies and $17,914,332 of insur- 
ance. At the same time the assets increased $7,835,093.86 and 
the surplus, $1,891,072.26. The totals January 1, 1894 were: 
Policies in force 136,410; amount insured, $325,152,947; total 
assets, $64,071,182.98; surplus, $11,358,456.80; amount loaned on 
real estate security, $51,412,788.28 and total amount paid policy- 
holders, $29,375,730.77. 

Important steps were taken in 1894 to perfect the general plan 
of policy contracts. These are not now noted, as their important 
features are embraced in the chapter on the development and 
liberalization of these contracts. 

The most important feature of 1894, however, was the adop- 
tion of policy-loans on October 12, 1894. It will be recalled that 
chapter 115, Laws of 1893, had granted the company this power 
and the Executive Committee decided it was time to begin. Loans 
to the amount of ninety per centum of their surrender value 
on the security of policies were authorized, and the first loan was 
made November 23, 1894. The policy loans on the first day of 
January 1908 amounted to $30,211,831.71. 

The tariff bill pending before congress in the early part of 
1894 contained an income tax clause that frightened officials of 
mutual companies since it imposed a burdensome tax, but peti- 
tions, letters and personal interviews with senators and represen- 
tatives set them aright on the proposition and the companies were 
saved from unreasonable burdens of this description. 



Decade of Remarkable Growth 255 

Events of importance crowded into the annual meeting of the 
Trustees held July 18, 1894. Matthew Keenan declined re-elec- 
tion as Vice President and resolutions recognizing his long and 
faithful services were placed on record. Willard Merrill was 
elected Vice President and William P. McLaren Second Vice 
President. A recommendation was made to abolish the office 
of Third Vice President, but this was not formally done until 
July 2j, 1894. The office has since been revived. 

The Insurance Committee solved a problem emanating from a 
modern institution on August 21, 1894. The question was: 
What to do with reference to Keeley graduates ? After due de- 
liberation it was decided that the applications of such persons 
might be received on the condition that if a policy should be 
issued thereon, the insured and beneficiary must sign an agree- 
ment under which the insurance would be void in case the insured 
should resume the use of liquor in any form. September 14, 
1894, the committee decided that ordinary surrender value would 
be allowed in these cases on forfeiture after three years from the 
date of issue. 

Alonzo W. Kimball, Assistant Superintendent of Agencies, 
entered into a contract with the company to take effect September 
1, 1894, for the Chicago general agency. Henry F. Norris, who 
had been a general agent in New York State, succeeded him, and 
George E. Copeland was appointed Second Assistant Superin- 
tendent. 

The feature of 1895 in the history of the company was its thor- 
ough examination by the insurance departments of the States of 
South Dakota, Nebraska, Massachusetts, Illinois and Wisconsin. 
The proposition to examine at this time came 
from the departments of South Dakota and Ne- 
braska, and those of Massachusetts, Illinois and 
Wisconsin were invited to participate. The last 
prior complete examination had been made in 1877, participated 
in by the departments of Massachusetts, New York, Illinois, 
Maryland and Wisconsin. 

The 1895 investigation began early in July and the report of 
the commissioners was made October 15, 1895. 

The Board of Examiners organized by the election of Com- 
missioner William A. Fricke, of Wisconsin, as chairman and 



1895 



256 Decade of Remarkable Grozvth 

placed the general supervision of the details of the examination 
in charge of William D. Whiting of the Massachusetts depart- 
ment. In the work of examination, the insurance departments 
were represented as follows : 

South Dakota and Nebraska, respectively, by C. H. Anderson 
and Frank H. Wilson, examiners, employing four clerks. 

Massachusetts, by Commissioners George S. Merrill and Wil- 
liam D. Whiting with a force of seven clerks. 

Illinois, by Superintendent B. K. Durfee, J. J. Brinkerhoff, 
actuary, and one clerk. 

Wisconsin, by Commissioner William A. Fricke and Henry 
S. Vail, actuary, with a force of five clerks, together with W. H. 
Mylrea, attorney-general. 

An examination, down to the minutest detail, was had and 
resulted in conclusions some of which are here quoted verbatim 
from the final report : 

"No expenditures for illegal or improper purposes have been dis- 
covered. * * * The Company's treatment of policyholders is emi- 
nently fair. 

"The commission has found little to criticise and much to com- 
mend. It is a pleasure to congratulate the policyholders of The 
Northwestern Mutual Life Insurance Company upon having their 
interests guarded by so efficient a board of officers, and the highest 
compliment that can be paid is, that this examination has demon- 
strated that the Company in its dealings with its policyholders and 
beneficiaries and in its financial management has lived up to that high 
standard of reliability which has gained for it the confidence of the 
people and made its grand success possible." 




vM^W^^JjuJu 



Commissioner of Insurance, Wisconsin. 
Chairman. 
Insurance Commissioner, Massachusetts. 

Commissioner of Insurance, Superintendent of Insurance, 

South Dakota. Illinois. 

Auditor of Public Accounts, Nebraska. 



Decade of Remarkable Growth 257 

Despite this endorsement, after so painstaking an examina- 
tion, the Chicago Despatch, published by Joseph R. Dunlop, 
printed a scurrilous attack on the company under date of Novem- 
ber 13, 1895. The Despatch said, in part: 

''The Northwestern was held up for about thirty-eight years, but 
it has evidently started to go down-hill from the summit of its life. 
* * * The Northwestern Mutual is rapidly becoming a sick old 
man. It has passed its prime. For a time it will profit * * * 
from its official examination * * * but this advantage will be 
short-lived." 

Readers of the Despatch were advised to watch further for 

"dispassionate reviews" of insurance companies, but the reviews 
did not last long for on February 2, 1896, Joseph R. Dunlop was 
sent to state-prison for two years and sentenced to a fine of 
$2,000 for just that sort of thing. 

During the year 1894, 20,777 policies aggregating $46,838,194 
of insurance were written, a decrease from 1893 of 166 policies 
and of $1,630,587 at risk. Premium receipts of 1894 exceeded 
those of 1893, however, by $77,836.15. During 1894, the assets 
increased $9,253,511.15, reaching a total of $73,324,694.13 on 
January 1, 1895, and the surplus increased $2,787,659.14 in the 
same time, when it reached the sum of $14,146,115.94. 

In many respects this showing was remarkable. The panic 
of 1893 had not seriously affected business during the first half 
of that year, but the depression that began about the middle con- 
tinued throughout the balance of that year and the whole of 
1894. Business conditions all over the country were extremely 
discouraging and life insurance necessarily suffered. 

Prior to this time, the company had sanctioned a mild form 
of bonus, but it was thought even that would better be aban- 
doned. It was, consequently, so decided, and the action had a 
temporary effect on the amount of new business written. 

George C. Markham, who had been elected a Trustee of the 
company July 17, 1895, was employed to carry on the work of 
the Second Vice President during the temporary 
absence of Mr. McLaren, and on January 29, 1896 
was elected a member of the Executive Committee. 
Mr. Markham's further official connection with the 
company will be noted in the course of this work. 



1896 



2 5 8 



Decade of Remarkable Growth 



George W. Mitchell, who had been elected a Trustee of the 
company in 1862, resigned on account of ill-health and on Janu- 
ary 29, 1896, G. Stanley Mitchell was elected as his successor. 
Mr. Mitchell served the company thirty-four years as Trustee, 
sixteen of which he was a member of the Executive Committee 
and at other times served on the Finance Committee. Mr. Mit- 
chell lived until February 16, 1907. G. Stanley Mitchell remained 
on the Board until July, 1907. He was at different times a 
member of the Examining Committee. 

The new business of the company for 1895 exceeded that of 
the previous year by about fifteen per cent, notwithstanding the 
continued business depression, and in presenting the annual state- 
ment to the Trustees, the Executive Committee, under date of 
January 27, 1896, referred to that fact as indicative of public 
confidence in the Northwestern. The committee also referred to 
the rigid examination to which the company had been subjected 
and made this the basis of comparison with figures of 1877, 
when the last prior general examination had been held. The 
following table shows some of the interesting results : 



1877 



1896 



Number of new policies written previ- 
ous year 

Total Insurance 

Total Insurance in force January 1st. 
Income all sources in preceding year. 

Assets on January 1st 

Surplus 



4,968 

$11,404,726.00 

67,493,191.00 

3,925,372.25 

18,062,825.02 

2,706,317.02 



23,248 

5 53,447,102.00 

364,259,235.00 

17,538,712.15 

82,902,389.64 

16,513,561.26 



The two states of New York and Wisconsin produced more 
business in 1895 than was written by the company in the entire 
field in 1876, while the insurance in force January 1, 1896, in the 
two great financial and insurance states of New York and Massa- 
chusetts nearly equaled the entire amount carried by the com- 
pany January 1, 1877. 

William R. Nethercut, Second Assistant Counsel, was ap- 
pointed February 3, 1896. 

Mr. Nethercut was born at Lake Geneva, Wisconsin, Feb- 
ruary 15, 1859; graduated from the Geneva High School in 1874, 



Decade of Remarkable Growth 



259 



and law school of Wisconsin University 1883 ; came to company 
April 18, 1884 as a title examiner and promoted to his present 
office as above noted. 

John J. R. Pease, of Janesville, died March 22, 1896. Mr. 
Pease was a Trustee of the company in 1858, when it was 
organized at Janesville, but resigned March 7, 1859, when the 
company removed to Milwaukee. He was re-elected in 1863, 
serving until 1870, and after a hiatus of one year was again 
elected, continuing as Trustee to the date of his death. Mr. 
Pease gave an aggregate of thirty-three years to the company 
as Trustee, during which time he served on the Examining Com- 
mittee from 1873 to 1876, from 1880 to 1881, and again from 
1883 to 1889. 

John J. R. Pease was born at Enfield, Connecticut, June 
25, 1817; came to Wisconsin in 1840, locating at Green Bay; 
went to Janesville in 1844 and resided there continuously with 
the exception of two years, from 1846 to 1848, spent in the navy 
office at Washington, District of Columbia; studied law under 
Chief Justice Whiton and practiced his profession until his death. 
Mr. Pease held many positions of honor and trust. 

The closing days of 1896 again brought death to the company. 
Dr. Lewis McKnight, one of its original policyholders and Medi- 
cal Director since its home in Milwaukee, died August 21, 1896. 
A special meeting of the Executive Committee was held and 
resolutions of condolence were adopted. On October 21, 1896, 
the present Medical Director, Dr. J. W. Fisher, was appointed. 

During 1896 a special committee gave much time to considera- 
tion of new policy forms and modifications of existing contracts, 
the results of which will be found in the policy chapter. 

The company had now been in its new office building ten years 
and the following tabulated figures will allow of interesting com- 
parisons : 







Assets 


Liabilities 


Surplus 


1897 




January 1, 1897.. 
January 1, 1887.. 


$92,633,604 
26,669,878 


$73,122,596 
22,240,697 


$19,511,008 
4,429,181 








Increase in ten years 


$65,693,726 


$50,881,899 


$15,081,827 


Percentage of Increase 


247.3 


228.8 


340.5 



260 



Decade of Remarkable Grozvth 





No 


of Policies 


Amount 


Insurance in force Janua 
Insurance in force Janua 


ry 1, 1897... 
ry 1, 1887... 




165,415 
56,544 




$384,167,829 
127,629,903 




108,871 


.t?^ <;37Q?* 




v ~,V- ,-- V 




192.5 


201 










New Insurance 
Written 


Income 


Disburse- 
ments 


During 1896 

During 1886 


$50,395,155 
28,082,620 


$18,575,435 
5,870,797 


$9,132,390 
3,576,507 






5 








$22,312,53 


$12,704,638 


$5,555,883 










Percentage of Increase 


79.5 


216.4 


155.3 



One of the early events of the year was the death of E. C. 
Jennings, Cashier, on February 17, 1897. Mr. Jennings was 
well and favorably known among the employees of the company. 
During his incumbency of the office, it was the practice to pay 
them in cash at the Cashier's office, but since the later system of 
paying by check was inaugurated, the Cashier's office is not 
brought into as close touch with employees. 

John W. Du Four, who had been Assistant Cashier since 
January 1882, was appointed Cashier and William P. Behling 
Assistant Cashier. Both are now serving. 

John W. Du Four was born in New York City April 11, 1845 > 
removed with his parents to Racine, Wisconsin, in 1857; located 
in Milwaukee in 1861 ; entered the employ of the company in 
1864 as office boy; was promoted to places in the Policy and Col- 
lection divisions and at one time was in charge of the Policy 
division ; then went to Cashier's department ; was appointed 
Assistant Cashier in January 1882, and Cashier, February 18, 
1897. Mr. Du Four has served the company continuously since 
1864, with the exception of a short time spent in the University 
at Evanston, Illinois. 

William P. Behling, Assistant Cashier, was born in Milwau- 
kee, Wisconsin, May 4, 1865 ; graduated from the high school 



Decade of Remarkable Growth 



261 




J. W. Bu Four 



of that city and entered the employ of the company August 15, 
1882, in the Secretary's department, where he remained until 
appointed Assistant Cashier, February 18, 1897. 

E. C. Jennings, whose death is 
here recorded, was the first to be 
officially designated Cashier of the 
company, having been appointed in 
1866, and the only other officer 
connected with the department ex- 
cept those mentioned, was William 
H. Farnham, who was Assistant 
Cashier until appointed Assistant 
Secretary. 

From 1859 to 1865, the com- 
pany (then known as the Mutual 
Life Insurance Company of the 
State of Wisconsin) transacted 
its banking business through the 
Bank of Milwaukee. In 1865, 
the account was transferred to the 
National Exchange Bank, its successor. In 1875, the Wisconsin 
Marine & Fire Insurance Company Bank was added as a deposi- 
tory. In 1892, the First National Bank; in 1894, the Wisconsin 
National Bank, and in 1902, the Marine National Bank, as the 
successor of the Wisconsin Marine & Fire Insurance Company 
Bank. The company maintains accounts at the present time with 
those four banks. 

It may be interesting to know that since the company began 
business nearly one-half million checks have been issued, and 
three hundred and seventy-one large cash books, averaging four 
hundred and fifty-five pages each, have been used. The Cashier's 
department receives and banks all funds and disburses the same 
on the order of the proper officers. At the present time, ten per- 
sons are employed in this department. 

Another death among those prominent with the company 
came March 21, 1897, when C. D. Nash passed away. Mr. Nash, 
it will be recalled, became identified with the company just before 
its removal to Milwaukee, having been elected a Trustee March 
4, 1859, and remained actively identified with it for thirty-eight 



262 Decade of Remarkable Growth 

years. Throughout this long career of service, his attention to 
the important duties of the respective positions he filled and his 
interest in the progress and prosperity of the company were 
unremitting. 

The Executive Committee decided to withdraw from Alabama 
April 16, 1897, by reason of a law passed by the legislature on 
February 18, 1897, a section of which read as follows: 

"That no life insurance company shall contest a claim under any 
policy of insurance on the plea of fraud or irregularities in application 
after three annual premium payments have been made on policy, but 
must pay the full amount of policy within sixty days after proofs of 
death have been received at the home office of the company in the 
United States." (Sec. 22, Act No. 614.) 

All life premiums being payable in advance, the effect of the 
quoted provision was that a policy with premiums payable annu- 
ally could not be contested for fraud after two yea r s ; one with 
premiums payable semi-annually, after two years and six months, 
and one with premiums payable quarterly, after two years and 
nine months, making a discrimination that was deemed unjust, 
but the seriously objectionable feature of the section was its 
attempt to abrogate the time-honored principle that "fraud, when 
discovered, vitiates all contracts/' 

The Northwestern has always endeavored to be fair in its 
treatment of claims. Not taking advantage of mere technicali- 
ties, it has refused to connive at or condone fraud. It then had, 
and still has, provisions in its policies making them incontestable 
in the hands of any honest man. In its thirty-eight years of 
experience prior to 1897, it had resisted but two claims for mis- 
statement in applications where the insurance had been three 
years in force ; but it was not prepared to stipulate that after the 
payment of three annual premiums it would place the dishonest 
policyholder on the same footing as the honest policyholder. It, 
therefore, reluctantly concluded to withdraw from Alabama a 
second time. It discontinued its first agency there in 1874, but 
returned in 1890, only to withdraw in 1897, since which date it 
has maintained no general agency in that state. 

Legislation of an irritating character was enacted in 1897 
in Kansas and Nebraska, and for a time, it appeared that the 
company would have to abandon its loaning business in those states. 



Decade of Remarkable Growth 



263 



Kansas passed a law which was approved March 13, 1897 
(chapter 243) requiring deficiency judgments to be assessed for 
taxation at their face value and providing that if the tax thereon 

should not be paid, the judgment 
should be offered for sale, and 
sold for not less than the amount 
of the tax. 

Nebraska's law provided, in 
effect, that the amount bid at a 
foreclosure sale should discharge 
the claim of the mortgagee and 
that no judgment for deficiency 
should be rendered. (Chapter 95, 
Laws of 1897.) 

These laws were objectionable, 
but the company had large inter- 
ests at stake in both states and 
decided to continue its invest- 
ments in them, notwithstanding 
the legislation in question. Ulti- 
mate decisions of the courts of both these states held the laws 
unconstitutional. The Kansas law was so held by the Supreme 
Court of that state, in the case of Hamilton vs. Wilson, Clerk, 
decided February 10, 1900 (59 Pacific Rept'r, 1069), and the 
Nebraska law, by the Supreme Court of Nebraska, in the case 
of Moore vs. Neece et al., decided January 23, 1908. ( 1 14 N. W. 
Rept'r, 767.) 

Possibly the most important feature of 1897 relating exclu- 
sively to the company's history was the adoption by the Executive 
Committee, on September 22, 1897, of an anti-brokerage rule in 
the following- clear and unmistakable terms : 




W. P. Behling 



"WHEREAS, the acceptance of insurance business from brokers, 
or others not regularly appointed and authorized as agents of this com- 
pany, may lead to violations of the anti-rebate rule of this company and 
to the placing of undesirable risks on the company's books: Therefore, 

"RESOLVED, That from and after October 1, 1897, this company 
shall not accept business from or pay commissions (or remuneration of 
any kind) therefor, to any other than duly authorized and accredited 
agents of this company; nor shall any agent of this company accept 
insurance business from or pay commission or consideration of any 



1898 



264 Decade of Remarkable Growth 

kind, directly or indirectly, to any other than a duly appointed and 
authorized agent of this company devoting his time, so far as life 
insurance work is concerned, exclusively to the interests of this com- 
pany, except, that legitimate surplus business (where the applicant has 
the limit in other companies) may be accepted by agents of this com- 
pany from regular agents of other companies, provided such last 
mentioned agents agree in writing to comply strictly with the anti- 
rebate rule of this company." 

This, and the anti-rebate rule adopted July 24, 1893, are 
printed in the company's rate books. They guarantee the plac- 
ing of Northwestern insurance at its par value by men selected 
and authorized by the company to solicit it. 

The company reached its fortieth anniversary disclosing in- 
creased results over the preceding year, as follows : In assets, 
$10,741,932.17; liabilities, $7,762,497.07; income, $1,444,727.67; 
insurance written, $7,856,734, and insurance in 
force, $28,913,541. Possibly the most interesting 
exhibit at that date was the amount of its income 
and disbursements. Of the companies reporting 
to the Massachusetts department, fourteen preceded the com- 
pany in a fortieth anniversary and the records show that the 
Northwestern's excess of income over disbursements in forty 
years was larger by two to nine million dollars than that of all 
the other companies attaining to a like experience. 

A new office, that of Auditor, was created January 10, 1898. 
William R. Adams was appointed, and still holds the position. 
Mr. Adams, born at Williamstown, Massachusetts, May 16, 1859, 
came while an infant to Wisconsin ; received his early education 
and business training in Milwaukee, and lived there until 1883, 
soon after which he engaged in business in New York City and 
Chicago. He returned to Milwaukee to accept a position with 
the company January 15, 1897. 

The Auditor has charge of the special real estate under direc- 
tion of the Finance and Real Estate Committees. 

The question of the reserve to be held for the security of 
insurance and annuity contracts was becoming one of wide 
interest to insurance companies generally and the Northwestern 
was but one of a number considering a change. The laws of 
many states prescribed the rate, but considerations of safety 
prompted the conclusions of most of the companies. 



Decade of Remarkable Growth 



265 




W. B. Adams 



A committee of the Northwestern gave the subject much 
thought and finally concluded that absolute safety required a re- 
serve accumulation based upon a less rate of interest than four 

per cent, the then prevailing rule, 
and, therefore, recommended that 
the company adopt as a basis for 
its future insurance contracts, a 
reserve calculated upon the Amer- 
ican Table of Mortality and three 
per cent interest, and that annuity 
reserves be based upon the same 
interest assumption and a mortal- 
ity table to be prepared. 

The Executive Committee 
adopted the recommendation, Jan- 
uary \2, 1898, to take effect Janu- 
ary 1, 1899. Subsequently the 
time was extended to February 1, 
1899, and it was not until Febru- 
ary 20, 1899, that the first policy 
under the new reserve (No. 422,200) was written. 

Once more, insurance companies were called upon to con- 
sider questions related to war, for it will be remembered, the 
Spanish- American difficulty began early in 1898. The policies 
of the Northwestern in force more than two years were free 
from restriction as to military or naval service, but the interest 
of existing policyholders called for extra precaution or protec- 
tion as to new members whose policies were less than two years 
old. Consequently on April 19, 1898, it was decided to issue 
war permits under such policies, including such as might there- 
after be issued, for service north of the Tropic of Cancer, at 
the rate of ten dollars per annum for each one thousand dollars 
of insurance, and for service south of the Tropic of Cancer, at 
the rate of twenty dollars per annum per thousand. It was ex- 
pressly provided, however, that no extra premium would be 
charged after the expiration of two years from the date of the 
policy. The question arising, it was also decided May 13, 1898, 
that war risk rates began at the time the insured was mustered 
into the United States service. 



266 Decade of Remarkable Growth 

On June 13, 1898, for the second time in the history of the 
company, a national war revenue measure was approved requir- 
ing revenue stamps to be attached to policies of life insurance, 
at the rate of eight cents for every $100, or fractional part 
thereof, of the amount insured. The question arose: Who 
should pay this tax ? It was at first voted that applicants should 
do so, but on further consideration it was decided that the com- 
pany should pay the tax out of the common fund, as other taxes 
were paid. 

One of the company's Trustees who had served for a long 
period passed away May 6, 1898. This was Angus Smith, of 
Milwaukee, a prominent grain merchant and capitalist, who was 
elected in 1874. Mr. Smith was born in Michigan, December 
16, 1822, and was consequently seventy-six years of age at his 
death. He was a man of resolute character, positive convic- 
tions, sterling integrity and remarkable efficiency in large busi- 
ness undertakings. 

July 20, 1898, Dr. H. L. Toulmin was elected Assistant Medi- 
cal Director. Dr. Toulmin came to the company from Philadel- 
phia, where he had been Assistant Medical Director of another 
company, and remained until January I, 1900, when he returned 
to Philadelphia. 

The year 1899 was the twenty-fifth anniversary of the ad- 
ministration of President Palmer. When he assumed office in 
1874, the assets of the company were $14,093,579.16; the amount 
of real estate loans, $7,986,335.58; the whole num- 
ber of policies, 35,226, and the amount at risk, 
$64,692,003 ; the income of the year preceding was 
$3,906,252.13; the death losses paid the previous 
year, $701,108.15; taxes paid by the company, $40,934.70, and 
the surplus, $1,779,731.02. Twenty-five years later the assets 
were $115,446,643.16; the amount of mortgage loans, $72,012,- 
604.79; the number of outstanding policies, 196,022 and the 
amount at risk, $457,712,738; the income for 1898 was $22,307,- 
406.99 ; the death losses paid that year amounted to $3,869,616.27; 
taxes paid in 1898 totaled $328,555.72 and the general surplus 
was $6,362,428.52. 

The business of the year ending December 31, 1898, was the 
largest in the company's history up to that time. The marked 



1899 



Decade of Remarkable Grozvth 



267 




stability of life insurance companies during all the long period 
of financial depression attracted public attention. In the case 
of the Northwestern, it appears that without special effort, with- 
out the payment of extra commis- 
sions and in the face of a strict 
enforcement of the anti-rebate 
and no-brokerage rules, results in- 
creased as follows: Assets, $12,- 
071,107; income, $2,287,245; in- 
surance written, $15,104,435, and 
insurance in force, $44,631,368. 

At the meeting of the Trustees 
January 25, 1899, the twenty-fifth 
anniversary of Judge Palmer's 
presidency was duly remembered 
by congratulatory resolutions, and 
at the quarterly meeting held Oc- 
tober 18, 1899, which happened to 

coincide with the eightieth anni- 
B. B. Bamsey r ,, ,". ,. . . ^ 

versary of the birthday of the 

President, a fine portrait in oil of him, by Ralph Clarkson, of 
Chicago, was presented to the company by members of the Execu- 
tive Committee. 

David B. Ramsey died at his home in Milwaukee, January 
10, 1899, having to that time held the position of Chief Exam- 
iner of Titles. Mr. Ramsey was born in Greenfield, New Hamp- 
shire, in September 1829; went west as a young man and taught 
school for some time in Kentucky; later located in Chicago and 
became manager of a large abstract of title office; removed to 
Madison, Wisconsin, in the early 50's ; located in Milwaukee in 
1855 and came to the Northwestern in 1871. At that time he 
was the sole Title Examiner for the company. At the time of 
his death, he was chief over a force of nine expert Title 
Examiners. 

The vacancy occasioned by the death of Mr. Ramsey was 
filled by the promotion of Courtney S. Kitchel, the present in- 
cumbent, who had been acting Chief Examiner since the summer 
of 1898, when Mr. Ramsey left the office, never to return. Mr. 
Kitchel was born in Thomastown, Connecticut, June 19, 1843 '■> 




268 Decade of Remarkable Growth 

graduated from Yale; located in Milwaukee in 1866, and entered 
the employ of the company December 14, 1874. 

The division at present consists of fourteeen Examiners beside 
Mr. Kitchel. During the year 
1907 this force examined, and re- 
ported upon, the title to 3,126 
pieces of real estate. 

The year 1899 witnessed the 
beginning of what is deemed an 
injustice to the company which 
has continued to date. This was 
with regard to taxation. 

During the early years, it will 
be recalled, no tax was put upon 
it by the state; in 1868, an annual 
tax of one per centum on the 
amount of Wisconsin premiums 
was imposed and in 1879 this 
Courtney S. Kitchel was increased to two per centum, 

with a license fee of $300 per 
annum. This remained the rate until the 1899 session of the 
legislature, when a law was passed (chapter 326) requiring the 
company to pay the state an annual license fee of one per centum 
of its gross income from all sources, excepting therefrom income 
from rents of real estate on which taxes were otherwise levied, 
and income from United States bonds. 

The plan of taxation thus inaugurated increased the com- 
pany's taxes from $29,647.67 in 1898 to $186,386.54 in 1899, and 
caused it to pay the State of Wisconsin, in taxes and license fees 
for the year 1907, the immense sum of $367,726.01 — more than 
$1,000 per day. 

The company paid into the Wisconsin state treasury in the 
year ending June 30, 1906, a sum greater than was paid by all 
other life insurance companies, all fire insurance companies, all 
accident and casualty companies, all loan and trust, plank-road, 
boom and river improvement, express, sleeping-car, freight line 
and equipment companies doing business in the state. It has paid 
nearly $3,000,000 in taxes to the State of Wisconsin during the 
last ten years. 



Decade of Remarkable Grozvth 269 

The tax paid by the Northwestern to Wisconsin for the year 
1907 was more than fourteen per cent of all Wisconsin premiums 
paid to it for that year, making a rate seven times as great as the 
average premium tax rate imposed by the laws of other states. 

Contestants over the proceeds of life policies had been dis- 
turbing the company and making it additional expense pending 
decisions by the courts as to the rights of various parties. It was, 
therefore, decided, April 24, 1899, that thereafter, in all cases of 
conflicting claims on policies, liability for which was not con- 
tested by the company, the amount payable thereon at the maturity 
of the policy should be deposited in bank in the form of a special 
deposit to await the issue. This was done with a view to protect 
the company against liability for interest and costs. 

Dr. H. L. Toulmin having, on October 21, 1899, resigned as 
Assistant Medical Director, Dr. George A. Harlow, the present 
incumbent, then of Boston, was appointed. Dr. Harlow began 
his duties in October, 1899. 

The new business written during the year 1899 failed to equal 
that written in 1898, but this was probably due to the loss of time 
on the part of field representatives of the company in familiarizing 
themselves with the new premium rates and policy put forth on 
February 1, 1899. The business record for 1898 was 28,723 
policies and $72,501,490 insurance, and that of 1899 was 27,643 
policies and $69,616,806 insurance. However, the net result of 
the work of 1899 showed increased results as follows: In assets, 
$11,200,085; income, $2,297,736; payments to pol- 
icyholders, $1,743,392, and insurance in force, 

$39>893,387- 

On January 1, 1900, the following were some 
of the totals shown : Income during previous year, $24,605,- 
143.46; paid to policyholders, $9,029,471.31; assets, $126,646,- 
728.45; surplus, $5,534,697.74, and total insurance at risk, 
$497,606,125. 

Notwithstanding the fact the company had been examined in 
1895, the Commissioner of Nebraska and three experts made 
another examination early in 1900, which calls to mind the fact 
that in 1898 the Kansas Department made an examination, and 
in 1899 both the North Dakota and Tennessee Departments did 
the same. 



1900 



270 Decade of Remarkable Growth 

George Oxborrow, a hero of the Crimean war, had worked 
in the Medical Department of the company exactly thirty-two 
years to a day, on April 1, 1900, when, owing to ill-health, he was 
obliged to tender his resignation. Mr. Oxborrow wore the Vic- 
torian cross for bravery, was prominent in the English societies 
of Milwaukee, and owing to his long term of service with the 
company was well known. He died March 10, 1903. 

When the building which formerly stood on the southwest 
corner of Broadway and Wisconsin street in the city of Mil- 
waukee, was being torn down in the summer of 1899, it occurred 
to George E. Copeland, now Assistant Superintendent of Agen- 
cies, that, in view of the fact that two small rooms of this 
building were the first offices of the company in Milwaukee, a 
souvenir of some description might prove of historic interest. 
He, therefore, had a gavel made out of a piece of studding from 
the partition which separated the two rooms, and presented it to 
President Palmer on July 15, 1900. The gavel is on the table in 
the committee room ready for use at meetings of Trustees and 
committees. 

One of the important events of 1900, as related to the history 
of the company, was the effort in its behalf before the Wisconsin 
State Tax Commission to invoke from that body such remedial 
recommendations and action as the excessive taxes under the new 
tax law, seemed to demand. Masterly arguments were presented 
in behalf of the company, but the legislature of 1901 met and 
passed a new tax bill and no definite conclusions by the Commis- 
sion were announced. A similar attempt was made before such 
Tax Commission in the summer of 1907 with like results. 

Richard M. Hackett, who was well-known wherever the 
Northwestern maintained an agency, owing to his employment as 
special representative, died suddenly of apoplexy, December 20, 
1900. Mr. Hackett entered the employ of the company in March 
1876 and continued in a confidential capacity to the date of his 
death. 



A Period of Extremes 



THE period from 1901 to the year which marks the semi- 
centennial anniversary of the organization of the com- 
pany, was one of extremes. Half that time life insurance 
sailed tranquilly on the sea of prosperity. Both the technical and 
practical sides had been brought to approximate perfection and 
the prospects were bright for an era of steady progress. Then 
came a storm. In the east, black clouds arose and broke into a 
torrent of investigation and legislation that threatened, for a time, 
the usefulness, if not the very existence, of companies. The gale 
was finally weathered and life insurance was saved, and the 
Northwestern, despite the general public prejudice, and the dis- 
quietude of the public mind, increased its business to a remark- 
able extent. 

An early subject of interest to the Trustees in 1901 was taxa- 
tion. The law of 1899, as has been shown, materially increas- 
ing the company's tax, was considered unjust to its policyholders 
and a special meeting of the Trustees was called 
January 11, 1901, to consider the subject. It was 
decided to ask the legislature, then in session, to 
modify the existing law so that the amount would 
be substantially reduced. 

An amendment was adopted requiring the company to annu- 
ally pay "three per centum of its gross income from all sources, 
excepting therefrom income from rents of real estate upon which 
the company has paid taxes and excepting also premiums col- 
lected outside of the State of Wisconsin on policies held by non- 
residents of the State of Wisconsin." 

The change thus made did not decrease the amount of taxes 
to be paid to Wisconsin, but obviated to some extent the burden 
to which the company would have been subjected in other states 
under the so-called "retaliatory laws." 

Speaking before the agents' meeting in 1901, President Pal- 
mer said: 



1901 



2J2 A Period of Extremes 

"It is twenty-eight years since in changing the official force of 
the company, I became its President. The assets of the company were 
then fourteen million dollars. You see by the reports which we have 
submitted at this annual meeting that the assets of the company were 
increased by the last twelve months' business by over thirteen mil- 
lion dollars. One year's work, therefore, gave to the company an 
increase of assets which was within a few hundred thousand dollars 
of being equal to the entire assets of the company twenty-eight years 
ago. I can only say that so long as life insurance companies are 
faithfully and honestly managed, so long as their business is con- 
ducted as a life insurance business should be conducted, and integ- 
rity is found in the management, in every department, so long life 
insurance will be one of the most beneficent agencies of our present 
civilization. If it can be protected from the assaults outside, it will 
continue to be a blessing to those who are members of the various 
companies." 

During 1900, the company issued 24,763 new policies involving 
$61,279,843 and making a total of 224,747 policies in force January 
1, 1 90 1, with $529,647,290 at risk. The amount loaned on mort- 
gages was $72,484,397.47; policy loans amounted to $7,176,615; 
the company owned bonds valued at $47,428,727.41 and the total 
assets were $139,512,166.31. 

At the Trustees' meeting held January 30, 1901, the office of 
Third Vice President was revived and George C. Markham was 
appointed. The duties differed from those formerly assigned 
to this officer, and consisted of special charge and management of 
the company's real estate, with general powers of an executive 
officer. 

In June 1901, the company joined the principal life companies 
of the United States and Canada in a mortality investigation 
(conducted by the Actuarial Society of America) upon the basis 
of the combined experience of the companies represented. This 
investigation was of specialized risks with a view of ascertaining 
the experience of companies with regard to those considered 
doubtful. The work of furnishing the necessary data relating to 
the company was under the direction of J. C. Crawford, then 
Assistant Actuary, and the research took a year's time. The 
published report of the investigation is interesting to those who 
are in any way concerned with mortality experiences. 

"Field Notes," the company's official agency publication, was 
issued first in September 1901 under the editorial supervision of 



A Period of Extremes 273 

Percy H. Evans, now Second Assistant Superintendent of 
Agencies, by whom it is still edited. This publication, as its 
introductory number frankly states, is not intended for general 
circulation, but designed to be a means of occasional communica- 
tion between the home office and the field. It is published monthly 
and is abundantly fulfilling the purposes of its originators. 

In the revision of the by-laws on October 16, 1901, the office 
of Treasurer, which was created December 30, 1858, was abol- 
ished, the office having become largely an honorary one. The 
Cashier and his department attended to the depositing and dis- 
bursing of company funds and the Treasurer was a financial factor 
in name only. Charles Ray, the then Treasurer, remained a 
Trustee of the company and is still serving in that capacity. 

Toward the latter part of 1901, the company had a controversy 
about taxes in Kentucky. It started when the authorities in a 
certain county endeavored to list for taxation the company's 
mortgages on property in that county. The company contested 
the levy and was successful in its contention that the law under 
which the taxation was attempted did not authorize it. Following 
this the auditor threatened to impose a tax on all life insurance 
companies doing business in Kentucky under a general franchise 
statute. The company was forced to question the applicability of 
this law to it, and on Septemebr 15, 1903, obtained a decision from 
the courts restraining the tax collecting officers from making or at- 
tempting to collect any franchise tax against the Northwestern. 
In some life insurance companies the custom has developed of 
holding policies numbered by the even thousands for the purpose 
of issuing them to specially prominent applicants, but the North- 
western never adopted the practice. It so happened, however, that 
policy numbered 500,000 was issued to William Jennings Bryan, 
November 30, 1901. 

Of the new insurance written and paid for during the forty- 
three years of its existence prior to January 1, 1902, 53.3 per cent 
was in force on that date. This was unequaled by any other 
company having one hundred million or more insur- 
ance in force. The year's work showed the follow- 
ing increases in results: In assets, $12,432,590.65; 
income, $2,310,979.85; payments to policyholders, 
$2,489,253,54; insurance in force, $45,057,710, and number of 



1902 



274 A Period of Extremes 

policies in force, 18,411. The grand totals January 1, 1902 were: 
Assets, $151,944,756.96; income, $29,471,784.02; payments to 
policyholders in 1901, $12,344,476.95; insurance in force, $574,- 
705,000, and number of policies in force, 243,158. 

Anson P. Waterman, of Beloit, Wisconsin, a Trustee of the 
company, died January 8, 1902. Mr. Waterman was elected 
Trustee June 3, 1861 and served until the day of his death. It 
was his proud distinction never to have been absent from a regular 
meeting of the Board during his forty-one years of service. Next 
to President Palmer, he was its oldest member. 

Mr. Waterman was born at South Ballston, Saratoga County, 
New York, January 15, 1819; settled in Beloit in 1851 ; was mayor 
of that city in 1857-9 an ^ hdd! many other positions of honor and 
trust. He was a broad-minded, public-spirited man of the strictest 
integrity. 

Vice President Merrill, who for many years had been the 
active head of agency supervision, began to feel the excess of 
daily detail, and that he might devote his time exclusively to 
general insurance, requested the Executive Committee on Decem- 
ber 17, 1902, to appoint Henry F. Norris, Superintendent of 
Agencies. Mr. Norris at that time was his assistant. The 
committee acceded to Mr. Merrill's wish and the promotion 
followed. 

Henry F. Norris was born in Springville, Erie County, New 
York, December 23, 1848; was educated at the local Academy; 
conducted a general store there until 1875 ; was a traveling sales- 
man for eleven years; on January 1, 1886 moved to Rochester, 
New York, and began soliciting insurance for the Northwestern ; 
removed to Milwaukee in July 1892 and was appointed Assistant 
Superintendent of Agencies. He is still serving as Superintendent. 

At the same time, George E. Copeland was promoted to the 
office of Assistant Superintendent of Agencies, and Percy H. 
Evans to that of Second Assistant, positions still retained by them. 

George E. Copeland was born at Middlebury, Vermont, May 
28, 1857; was general agent of the company at Davenport, Iowa, 
from January 1, 1886, to May 1, 1893, when he came to the 
home office ; began his duties as Second Assistant Superintendent 
of Agencies September 1, 1894 and was promoted as above 
stated. 



1903 



A Period of Extremes 275 

Percy H. Evans was born in San Diego, California, November 
9, 1873; educated in public schools of Denver, Colorado, and 
University of Michigan; entered the employ of the company as 
clerk in Actuary's department June 1, 1889 ; went to San Francisco 
in 1896 as a life insurance solicitor and editor of an insurance 
journal; returned to Milwaukee in 1901 and was made Second 
Assistant Superintendent of Agencies. 

In the latter part of 1901, changes were made in the terms 
of contracts with general agents to become effective January 1, 
1902. These were less advantageous to the agents than formerly 
and there were those not connected with the com- 
pany who hoped that the change would cause dissat- 
isfaction among them. At any rate, the year 1902 
witnessed vigorous solicitation on the part of others 
to engage the services of Northwestern general agents. This was 
particularly true in the east, where an extensive business was 
being done, but Chicago and other parts of the west became 
involved. Extravagant offers were made, but most agents 
remained loyal, and persisted in their work. 

Neither the changed contracts nor the campaign of conquest 
had material effect on the volume of life insurance paid for, nor 
in the increase of assets and income, in 1902. During the year 
29,379 new policies were reported covering $68,421,657 of insur- 
ance. The 1902 gain in insurance in force was forty-five millions 
in round numbers, which was practically the gain of 1901. 

On January 30, 1903, President Palmer presented to the 
Executive Committee for consideration, proposed amendments to 
existing insurance laws: (a) Authorizing the company to invest 
its funds in like securities and under the same restrictions in the 
territories and the District of Columbia as in the states, and 
(b) authorizing the valuation of the company's bonds at the 
average market value for six months or a year preceding the 
thirty-first day of December in each year. 

The committee sanctioned both these propositions and they 
were enacted into laws, the first as chapter 6, Laws of 1903, and 
the other as chapter 237. The bond valuation was limited to "the 
range of the market and the average market value as then found 
running through a reasonable period of time, not more than six 
months preceding the thirty-first day of December in each year." 



1904 



276 A Period of Extremes 

George F. Wheeler, Trustee from July 17, 1889, and a promi- 
nent banker of Waupun, Wisconsin, died at Los Angeles, Califor- 
nia, April 25, 1903. Mr. Wheeler was born in Vermont, December 
23, 1824; removed to Wisconsin and took a prominent place in 
public affairs of the state. After his election as Trustee, he was 
repeatedly appointed a member of the Examining Committee. 

Dr. C. E. Albright, then Second Assistant Medical Director, 
resigned July 6, 1903, and a few days later the Executive Com- 
mittee authorized the appointment of Dr. William Thorndike as an 
Assistant Medical Director. August 22, 1903, Dr. D. E. W. 
Wenstrand was appointed Third Assistant Medical Director. 

The year 1903 was characterized by insurance business disturb- 
ances, by severe fluctuations in the values of securities and by 
unsettled business conditions, but the transactions of the company, 
both in amount of insurance written and in the 
receipt and investment of funds, were the largest 
in its history. 

Items of increase for 1903 were as follows : 
Number of policies, 18,349; insurance in force, $42,169,911; 
assets, $13,158,190; income, $2,196,691, and payments to policy- 
holders, $2,090,158. 

A thoughtful act on the part of the Executive Committee is 
shown in the following resolution adopted February 13, 1904: 

"In view of the recent conflagration in Baltimore, it is RE- 
SOLVED by the Executive Committee that as to all policyholders of 
this company resident in Baltimore, an extension of thirty days from 
February 7, 1904, be granted them in which to pay their premiums 
on policies in force and held by them on said seventh day of Febru- 
ary, without any interest charge, and also without the usual certificate 
of health." 

During the latter part of February 1904, a letter was received 
from a man in Indian Territory covering an offer to solicit insur- 
ance among the Indians. The idea appealed to him as a particu- 
larly happy one and he requested official sanction. The proposi- 
tion was submitted to the Committee on Insurance which decided 
that while there might be no objection to issuing policies on 
specially selected lives among educated Indians, it was not deemed 
desirable to employ as agent a man making a specialty of working 
among them. 



A Period of Extremes 277 

A series of deaths began in 1904 and continued in 1905, which 
removed from the official force of the company men who had 
been factors in its progress. 

The first of these was William P. McLaren, Second Vice 
President, who died March 2, 1904. A resume of Mr. McLaren's 
connection with the company is given with the events of 1877. 
April 20, 1904, George C. Markham was elected Second Vice 
President to fill the vacancy. 

The second death was that of Jesse Spalding, of Chicago. 
Mr. Spalding became a Trustee in 1883 and so remained until 
the date of his death, March 17, 1904. He was attentive to the 
interests of the company and in years of health and business 
activity, was zealous in promoting its advancement. Accustomed 
to large affairs, he appreciated company needs and urged a broad 
and liberal policy in its management. 

Titus Sheard, of Little Falls, New York, died April 13, 1904. 
Mr. Sheard was elected Trustee in 1896 and so continued to the 
date of his death. Throughout his trusteeship he manifested a 
deep interest in the affairs of the company. 

John Johnston died June I, 1904. The connection of Mr. 
Johnston with the company is shown with the events of 1891, 
when he was first elected Trustee. 

In a revision of the by-laws adopted at a special meeting of 
the Trustees held April 20, 1904, the Executive Committee was 
increased to ten members and the general duties of the Third 
Vice President were changed, as follows : "The Third Vice Presi- 
dent shall act as the Assistant of the President and Second Vice 
President and shall perform all such duties as may be assigned 
to him from time to time by the Executive or Finance Committees, 
the President, the Vice President or the Second Vice President." 

The office of Third Vice President was not filled at that meet- 
ing, however, but at the annual meeting held July 20, 1904, P. R. 
Sanborn, then Second Assistant Secretary, was chosen. 

Mr. Sanborn was born at Appleton, Wisconsin, February 1, 
1853 ; later lived at Madison, Wisconsin ; came to the company 
December 20, 1875 ; was designated superintendent of the Loan 
department May 5, 1890; was appointed Second Assistant Secre- 
tary July 15, 1890, and Third Vice President, the office he now 
holds, as above stated. 



2 7 8 



A Period of Extremes 




T. J. Knox 



At the same meeting T. J. Knox was chosen Second Assistant 
Secretary, his present position. 

Mr. Knox was born at Peterhead, Aberdeenshire, Scotland, 
December 8, 1861 ; educated in the 
public schools there ; arrived in 
Milwaukee April 1881, and im- 
mediately engaged with the Chi- 
cago, Milwaukee & St. Paul 
Railway company in a clerical 
capacity ; he came to the company 
as clerk in the Loan department 
April 1, 1892, and was promoted 
to Second Assistant Secretary as 
stated. 

An examination into the af- 
fairs and condition of the com- 
pany under direction of Hon. Zeno 
M. Host, Commissioner of Insur- 
ance for Wisconsin, was begun 
November 9, 1904. General super- 
vision of the details was placed in charge of S. H. Wolfe, an 
actuary and examiner of broad experience. The examination was 
complete and ended late in January 1905. Extracts from the 
report of the examiner in charge, in the order in which they 
appear, are as follows : 

As to income and disbursements : "The company has an 
excellent system of having its accounts audited. Four times a 
year independent accountants who have no connection with the 
company, and in fact come from another city, visit the home 
office and verify the transactions of the company for the preceding 
quarter. This method of having the audit made independent of 
local influences is to be commended. In addition to this, once a 
year a committee of three from the Board of Trustees visits the 
home office to ascertain the presence of all of the assets which 
are claimed by the company. 

"One of the principal points to which I wish to direct your 
attention * * * is the low commission rate which is paid 
the agency force for the procurement of business. This low 
rate is not the result of book-keeping methods whereby some 



A Period of Extremes 279 

of the cost of obtaining the business is charged to other accounts, 
but represents the actual condition of affairs. I also desire to call 
your attention to the economical manner in which this company 
administers its business at its home office. The salaries paid are 
moderate and the expenses of the company are kept well within 
the loading in its premiums." 

As to assets : "The real estate owned by this company consists 
of its home office property in Milwaukee and one hundred and 
thirty-two parcels acquired under foreclosure proceedings. Each 
piece was carefully examined and appraised by competent real 
estate experts in the various localities in which the properties are 
situated. The home office building is a well-built structure de- 
voted almost entirely to the use of the company and maintained 
in most excellent condition. The appraisers selected to examine 
this property reported that notwithstanding that it had been con- 
structed about twenty years ago, it showed absolutely no signs of 
deterioration. * * * The outside properties of the com- 
pany are looked after in a systematic and excellent manner by the 
real estate department, and * * * are worth $584,731.99 
more than the figures at which the company carries them upon its 
books. This most creditable showing is an indication of the 
excellent manner in which the company's properties are being 
looked after. 

"The mortgage loans of the company were examined in detail. 
In each case the presence of the necessary papers was ascertained 
and appraisals were made by competent experts wherever it was 
deemed necessary. The careful and conservative manner in which 
these loans have been placed is indicated by the small amount 
of past due interest which in this and previous years has been 
outstanding on December 31. 

"The company has a thoroughly equipped abstract department 
in charge of the Counsel of the company and his assistants and 
I have no hesitation in saying that I have never seen the legal end 
of the investments of an insurance company looked after so sys- 
tematically and with such fidelity to the interest of the policy- 
holders as in this case. The security is always the first consid- 
eration and the interest rate the second. * * * The records 
in this department" (the Loan) "are most complete and its ad- 
ministration is certainly to be commended." 



280 A Period of Extremes 

As to policy loans, it is said that they constitute "one of the 
best and most remunerative assets of the company." 

As to the company's bonds : "The bonds owned by the com- 
pany * * * consist of gilt-edged goverment, municipal and 
steam railway bonds, and among the last named, is found none 
which is a second mortgage bond or bonds issued upon the de- 
posit of the stock of railroads as security. The company does 
not invest its funds in street railway, electric light or industrial 
corporation bonds. * * * I particularly desire to direct your 
attention to the fact that there is not one cent of the funds of 
The Northwestern Mutual Life Insurance Company invested in 
the stock of any corporation. It is not interested in the success or 
failure of any subsidiary or auxiliary institutions." 

As to dividends: "The company is a mutual organization in 
the strictest and best sense. It issues annual dividend and semi- 
tontine policies." (The latter were abandoned in 1905.) "All 
policyholders of the same class whether they hold annual dividend 
contracts or semi-tontine contracts receive the same dividend each 
year, i. e., two policyholders aged 35 holding twenty-payment 
life policies, one upon the annual dividend basis and the other 
on the deferred dividend basis, will receive each year exactly 
the same dividend apportionment. In the latter case, however, 
the unpaid dividends are accumulated at interest and constitute 
the tontine fund. The company does not, however, compel the 
policyholder at the time that a policy is issued to him to make a 
selection of the manner in which the dividends are to be paid. 
At the end of the second year (when the first dividend is appor- 
tioned) the policyholder receives notice of the amount of such 
dividend and is requested to indicate the manner in which he 
wishes it applied, i. e., as a cash payment upon his next premium, 
as a reversionary addition or as the beginning of his semi-tontine 
accumulation. This removes the policyholder from any influence 
of the agent who might desire to write semi-tontine contracts 
instead of annual dividend ones. * * * From the foregoing 
it will be apparent to you that the company apportions each year 
to each policyholder his share of the surplus." 

In conclusion, the examiner wrote the following terse sentence : 
"This is a company operated by the policyholders and for the best 
interests of the policyholders." 



1905 



A Period of Extremes 281 

Extracts from the comments of Commissioner Host on the 
examination are also noted as follows : "The policyholders of the 
company, and the people of the State of Wisconsin may well feel 
proud of the company's condition and record, especially at this 
time when so much criticism prevails. * * * The North- 
western Mutual Life Insurance Company has not a bank stock, 
not a trust company, no industrial enterprises; every investment 
is in strict compliance with the laws of this state. * * * The 
findings of the examiner in charge disclose the fact that the 
several departments of the company are economically conducted 
with ability and integrity." 

During the year 1904, 32,067 new policies were reported, 
covering $73,876,037 of insurance and making the total number 
of policies in force January 1, 1905, 299,730 amounting to 
$708,552,287. Its assets were then $193,777,433.29 
and the general surplus was $7,276,778.76. 

Death claimed its victims in 1905, carrying away 
Alonzo W. Kimball, March 25 ; Willard Merrill, 
August 8, and Charles E. Dyer, November 26, each of whom 
has already been noticed in this narrative. 

January 25, 1905, the by-laws were amended to create the 
office of Associate Actuary. On January 27, 1905, J. C. Crawford, 
then Assistant Actuary, was elected to the new office which he 
continues to hold. 

James Camp Crawford was born at Herrick, Bradford County, 
Pennsylvania, January 15, 1844; was educated at the common 
schools of Herrick; the Collegiate Institute of Towanda, Penn- 
sylvania, and received the degrees of A. B. and A. M. at La 
Fayette College, Pennsylvania, in 1871 and 1874 respectively; 
was an educator from August 1871 to July 1888 in the capacity 
of principal of high schools and superintendent, residing at various 
times at Pittston and Athens, Pennsylvania, and Marinette and 
Green Bay, Wisconsin; engaged as solicitor with the company in 
July 1888 ; removed to Milwaukee in May 1890, and was appointed 
Assistant Actuary July 8, 1892. 

Mr. Crawford served in the Pennsylvania militia and from 
March to August 1865 was a member of the 141st Regt. Pennsyl- 
vania Volunteers ; was a member of the Milwaukee School Board 
1905-1907; and is a Fellow of the Actuarial Society of America. 



282 



A Period of Extremes 



On April 14, 1905, the vacancy in the office of Assistant 
Actuary, was filled by the appointment of the present incumbent, 
Frank C. Hemsing. 

Mr. Hemsing is a native of Milwaukee, born May 23, 1871. 
He was educated in the public schools of Milwaukee and entered 
the employ of the company in the capacity of clerk in the 
Actuary's department, January 19, 1888. 

The question of resuming business in the State of Missouri 
having come up for renewed consideration it was, on May 1, 

1905, decided in view 
of changed conditions 
to re-enter that state, 
where the company is 
now m a i n t a i ning 
three general agen- 
cies. 

At the meeting of 
the Trustees held July 
19, 1905, a general 
promotion of officers 
occurred, George C. 
Markham being elect- 
ed Vice President ; J, 
W. Skinner, Second 
Vice President, and 
C. H. Watson, secre- 
tary. 

George C. Mark- 
ham is a native of 
New York state, born 
in Wilmington, Essex County, May 7, 1843 > educated in the pub- 
lic schools of Essex County and later at private and select schools ; 
taught school for a time; was admitted to the bar in 1868; located 
in Milwaukee in 1869, practicing his profession ; was elected a 
Trustee of the company and appointed a member of both the 
Executive and Finance Committees in 1895 ; was elected Third 
Vice President January 30, 1901 ; Second Vice President April 
20, 1904, and advanced to the Vice Presidency July 19, 1905. 
James Washburn Skinner was born in Warren, Pennsyl- 




Chas. E. Dyer 



A Period of Extremes 283 

vania, August 8, 1838 and came with his parents to Wisconsin 
when nine years old, settling in Sheboygan County. At the age 
of thirteen, he entered his father's general store ; was in due time 
admitted to partnership and later engaged in manufacturing at 
Sheboygan Falls. When gold was discovered in Colorado he went 
west and after three years of "roughing it," returned to Wis- 
consin, entering the employ of the Northwestern, December 26, 
1865. He had charge of the collection division until appointed 
Assistant Secretary March 18, 1872. He was chosen Secretary 
January 25, 1882, and was elected Second Vice President, which 
office he now holds, as above stated. 

Reference to Mr. Watson and his connection with the com- 
pany has been made in prior pages. 

A complete history of life insurance in 1905, and the two 
succeeding years, cannot be written without entering fully into 
the details of official investigations and legislative proceedings 
during those years, together with the causes leading thereto, and 
the conditions under which they were conducted. The time to 
write an impartial and accurate narrative of these events has not 
arrived; furthermore, such an account would trespass upon the 
scope of this history and must therefore be omitted. It is suffi- 
cient here to say that legislative committees in several states, 
including Wisconsin, as well as Royal commissions of the 
Canadian and English governments, were appointed to investigate 
the life insurance business. A convention of governors, attorneys- 
general and insurance commissioners of the several states was 
held, and a committee known as the "Committee of Fifteen" was 
appointed to consider the subject with the special object in view 
of recommending uniform laws throughout the Union. Investi- 
gations made by these officials have been classified as actuarial, 
legal, and those "looking toward the economic and social phases 
of the insurance business." Of this last named class, the report 
of the insurance department of the state has said "the Wisconsin 
investigation stands as a distinctive type." 

The Wisconsin legislative committee recommended to the 
legislature of Wisconsin, which met in January, 1907, the adoption 
of many bills affecting the business of life insurance, which it 
had prepared. A considerable number of these bills became laws 
and are now in full operation. Several of the bills, however, that 



284 A Period of Extremes 

were enacted led to the withdrawal from Wisconsin on the first 
day of January, 1908, of twenty-three of the foreign life com- 
panies which had theretofore been doing business in the state. 
The laws so enacted may be found in the printed volume of the 
Laws of Wisconsin for the year 1907. 

On July 10, 1907, the company withdrew from the State 
of Texas, such withdrawal being occasioned by the enactment of 
a law of that state known as the Robertson Act, which provided 
that a life insurance company doing business in Texas must invest 
a certain percentage of its reserves on Texas policies in Texas 
securities, and deposit them with the state treasurer or at some 
other place in that state. The deposit feature of this act is 
somewhat similar to the enactment which caused the company to 
withdraw from Canada in 1878. Furthermore, the ad valorem tax 
to which the deposited securities would be subjected under the 
Robertson Act, as explained in a circular letter to the Texas 
policyholders, would decrease the net rate of interest on such 
securities to such an extent as might imperil the reserve repre- 
sented thereby, and this risk the company was unwilling to take. 

The unusual prominence given life insurance in 1905 and the 
confidence of the people in the Northwestern, made that year 
prosperous for the company. 

Increase in every feature where progress was 
courted, marked the year's work, and the totals 
were gratifying. On January 1, 1906, the assets 
were $208,417,072.72, and the general surplus, 
$9,331,697.58. There were 320,896 policies, representing 
$764,266,187 of insurance, in force. 

Judge George H. Noyes, of Milwaukee, was appointed Counsel 
of the company to succeed Charles E. Dyer, lately deceased, on 
January 22, 1906, and still continues in that capacity. On January 
31, 1906, at the semi-annual meeting of Trustees he was elected 
to the Board and made a member of the Executive Committee. 

George H. Noyes was born at McLean, New York, April 18, 
1849; came to Wisconsin in 1855; educated at the University of 
Wisconsin ; admitted to practice law on graduation in 1874 ; was 
judge of the Superior Court of Milwaukee County from 1888 
to 1890; resigned and resumed practice; was a member of the 
Board of Regents, University of Wisconsin, for twelve years, 



1906 



A Period of Extremes 



285 



being president two terms ; president of the Wisconsin State Bar 
Association in 1904-5. He was given the degree of LL. D. by 
the University of Wisconsin in 1904. 

The death of Charles H. Watson, Secretary of the company, 
occurred April 14, 1906. It will be recalled that Mr. Watson, 
after thirty-five years with the company, had been elected Secre- 
tary July 19, 1905. 

A. S. Hathaway, Assistant Secretary, was promoted to the 
office of Secretary July 18, 1906, and E. D. Jones was appointed 
Assistant Secretary. 

A. S. Hathaway was born at Bedford, Ohio, March 10, 1861 ; 
educated at public schools in Cleveland, Ohio ; came to Milwaukee 
in 1886; entered the employ of the company in the collection divi- 
sion, March 1886; was given charge of the department in 1890; 
appointed Assistant Secretary July 19, 1905, and Secretary, the 
position he now holds, on July 18, 1906. 

E. D. Jones is a native of Milwaukee, born July 25, 1869. He 
was educated in the local public 
schools and on leaving them, 
worked in the auditor's office of 
the Chicago, Milwaukee & St. 
Paul Railway company and for 
the Wisconsin Central Railway 
company until March 1, 189 1, 
when he came to the Northwest- 
ern as a clerk in the Secretary's 
department. 

In view of the appalling dis- 
aster that resulted from the earth- 
quake in San Francisco and other 
parts of California, the Executive 
Committee on May 9, 1906, 
E D Jones adopted the following resolution: 




"RESOLVED, that the general agent of this Company at San 
Francisco, be authorized to accept from all California policyholders 
suffering loss by reason of the earthquake of April 18, 1906, or the 
fires following the same, payments of their premiums falling due 
on March 19, 1906, or within ninety days from that date, at any time 
within sixty days from the respective dates on which such premiums 



1907 



286 A Period of Extremes 

shall have become due, the thirty days' grace allowed by policies, if 
any, to be counted as a part of said sixty days. Evidence of good 
health shall not be required." 

The reports to January i, 1907, did not show any decrease 
in desired results. At the close of 1906, the year of its own 
investigation and following the climax of insurance disclosures, 
the company showed an increase of $54,986,092 
insurance in force and $12,684,641 in assets. Dur- 
ing the year, 34,938 new policies amounting to 
$93,885,273 of insurance were reported. 
On March 26, 1907, the Executive Committee decided that 
in view of the provision of the New York law that no company 
doing business in that state should allow any prize or reward, 
additional commissions or compensation of any sort based upon 
the volume of business, the practice of inviting agents who placed 
a certain amount of business during the year to attend the annual 
meeting at the expense of the company, should be discontinued. 
Notwithstanding this change the Association of Agents met as 
usual in 1907, each one in attendance paying his own expenses. 

Policy number 700,000 was written April 27, 1907. The dates 
of these round-numbered policies are as follows : Number 100,000, 
August 9, 1879; 200,000, February 8, 1890; 300,000, April 14, 
1894; 400,000, June 29, 1898; 500,000, November 30, 1901 ; 
600,000, November 7, 1904, and 700,000, April 27, 1907. 

The Trustees on July 16, 1907, adopted an amendment to the 
by-laws to the effect that the Examining Committee annually 
elected should consist of three policyholders of the company. 

November 13, 1907, the Executive Committee decided to grant 
the full ninety-five per cent of cash surrender values on policy 
loans, being the limit allowed by the statutes of this state. 

On the death of W. H. Surles, general agent for Wisconsin 
and Northern Michigan, August 20, 1907, this territory was 
divided into seven general agencies. 

The company's semi-centennial year began with good business 
prospects. The previous one had shown consistently increasing 
results and there was nothing on the horizon 
threatening the field work. Present indications are 
that this will be the most prosperous year in the 
company's history. 



1908 



A Period of Extremes 287 

Following is a table showing its development by decades: 



Year Ending 


Number of 
Policies 


Insurance in 
Force 


Assets 


January 1, 1858 

January 1, 1868 

January 1, 1878 

January 1, 1888 

January 1, 1898 

January 1, 1908 


21,380 

34,766 

64,406 

178,462 

361,084 






$ 36,539,333 

64,416,847 

147,615,323 

413,081,370 

881,563,593 


$ 3,126,197 

18,173,257 

28,858,019 

103,375,536 

232,819,246 



It is pertinent, and it may be interesting, to note that only 
five life companies in the world have as much insurance in force 
as the Northwestern has gained during the last ten years. 

January 1, 1908, found the company preparing to comply with 
the new Wisconsin laws, while most of the foreign companies 
were preparing to withdraw from the state. It was a unique 
position. The Northwestern did not withdraw ; and that it 
might not be thought it would embrace the situation to its profit, 
H. F. Norris, Superintendent of Agencies, sent the company's 
Wisconsin agents notice to use every reasonable effort to induce 
policyholders in withdrawing companies to retain their policies. 

By a strange coincidence, two of the company's Trustees died 
on April 17, 1908: Thomas C. Lawler, of Dubuque, Iowa, elected 
in 1891, and Henry C. Urner, of Cincinnati, Ohio, in 1893. Mr. 
Lawler was particularly well known at the home office because of 
his many years of service on the Examining Committee. Mr. 
Urner was a staunch supporter and safe adviser. He had been 
nominated for re-election. 

This brings the record down to July 1, 1908, and embraces the 
larger portion of the data relating to the company's history. 
Important features of development have, however, been omitted, 
to be later included in chapters dealing with special departments, 
the whole, in combination, making the completed product. 

Enough has been recounted upon which to base impressions 
of the past; when the rest shall have been set down and consid- 
ered, what hope will it bear for the future ? 

The following words of President Palmer, spoken to agents 
a few years ago, may serve to answer : 



288 A Period of Extremes 

"My connection with the company must soon cease," he said. 
"Looking back upon the years which are past, I am admonished 
that there are very few left for me, and the time is very near at hand 
when, though I may still perform my daily duties, I shall be obliged 
to look back upon my connection with The Northwestern Mutual 
Life Insurance Company as a matter of history. But the company 
itself will go on; it must go on, with the force you have in the field, 
with the men you have to care for it, and there can be no doubt that 
its interests will be protected, and while 'men may come and men may 
go,' the grand old company, like the little brook of Tennyson, will 
go on forever." 



Liberalization of the Policy Contract 



THE first policy of life insurance issued by the company, it 
will be recalled, bore date November 25, 1858 and its terms 
show that the management then felt the necessity of 
throwing about the company ample protection against seem- 
ingly unfavorable conditions affecting insurance risks, but time 
and a better knowledge of the principles governing the busi- 
ness have swept away a multitude of restrictions once thought 
necessary to a contract for life insurance and added many new 
benefits not thought possible in the early history of the company. 

At the outset the only form of policy issued was the Ordinary 
Life with premiums payable during the whole of life and the full 
amount of the insurance payable at the death of the person insured 
to a beneficiary, usually a wife, or to children in case of the prior 
death of wife, provided all the conditions of the contract had 
been fully complied with. The premiums were generally payable 
annually, and a failure to pay any premium when due termi- 
nated the contract absolutely without any provision for surrender 
value in cash or by way of fractional paid up insurance, all pre- 
vious payments being forfeited to the company. 

It was also provided that if any declaration made in the appli- 
cation for the policy should be found in any respect untrue the 
policy should be null and void. It was further stipulated that if 
the insured, without the consent of the company previously ob- 
tained and endorsed upon the policy, should pass beyond the 
settled limits of the United States (except to the settled limits of 
the British Provinces) or should pass west of the 100th degree of 
west longitude, or should visit those parts which lie south of the 
southern boundaries of Virginia or Tennessee, or should reside 
within ten miles of the Mississippi or Missouri Rivers, or enter 
upon a voyage on the high seas, or be engaged in any capacity on 
any sea, sound, inlet, river, lake or railroad, or in any military or 
naval service whatsoever (except militia not in actual service) or 
if he should die by his own hand or by the hands of justice or in 

291 



292 Liberalization of the Policy Contract 

consequence of a duel or in the violation of any law of the United 
States or any other country, then the policy should be null, void 
and of no effect. 

At this early date the company granted insurance on both 
male and female lives, and, subject to restrictions, that practice 
was continued until the year 1876. The policies involving female 
lives were on the Joint Life form insuring husband and wife for 
the benefit of the survivor, or single policies for husband and for 
wife, each naming the other as beneficiary. No policies were 
issued on the lives of unmarried women, but a widow might insure 



Git 
OF THE STATE OF WISCONSIN 



^£ safe** %m **w*i»« & 




Policy Heading used from 1858 to January 1, i860 

for the exclusive benefit of her children, and a few policies of 
that description were issued. 

These Life forms, similar in many respects to those in use by 
other companies, were continued without material modification 
until the year 1861, when the company introduced a number of 
amendments here described. 

The insured was given a choice in the method of paying pre- 
miums either annually, semi-annually or quarterly, but a different 
form was used for each variety of payment, and it was not until 
two years later (1863) that the company prepared a single form 
adapted to the case of either of the three varieties of payment. 
At the same time (1861) the "heirs at law" clause was introduced, 
providing that in case of the death of the beneficiary before the 



Liberalization of the Policy Contract 293 

death of the person whose life was insured the proceeds of the 
policy would be payable to the heirs at law of the person whose 
life was insured. It was no doubt expected that this provision 
would prove a convenience to the policyholder, but it was the 
cause in after years of much dissatisfaction because it prevented 
the surrender of such policies for cash value, as it could not be 
determined in advance who the legal heirs would be at the time 
of the death of the person whose life was insured. 

In the same year the so-called "temperance" clause was intro- 
duced in the following language: "If the insured shall become 

tHU Stiff 1 ® ^ ^MPRMt 

~u««a ^U> ~* QF THE STATE OF WISCONSIN. "•feSir^v.OT -v 

% 




Policy Heading used from January 1, i860 to March, 1863 

so far intemperate as to impair his health or induce delirium 
tremens * * * * or shall die of any injury received when 
in a state of intoxication, the policy shall be null and void and of 
no effect." 

It was in 1863 that the first form of Life policy providing for 
premium note in part payment of each annual premium made its 
appearance. The conditions relative to travel, residence and oc- 
cupation were modified in important particulars and an arrange- 
ment perfected by which the company might give in writing a 
waiver of certain policy provisions. The restriction against 
residence within ten miles of the Mississippi or Missouri Rivers 
was also stricken from the contract. 



294 



Liberalization of the Policy Contract 



Although paid-up insurance had previously been allowed in 
case of Limited Payment policies, it was not until the year 1867 
that the company adopted for Whole Life policies the so-called 
"non-forfeiture clause," being a recognition of the equity of the 
policyholder in the contract upon which premiums for two or 
more years had been paid, but upon which default had finally 
occurred, and preserving to him the part of the insurance paid for. 
The clause as adopted was as follows : "And the said company 
further promises and agrees that if after the full amount of two or 
more annual premiums, including any premium note or notes with 






^ 



\^P 







r TH r S POI J CI RANGE 



Policy Heading used from March, 1863 to March, 1863 



interest thereon, shall have been paid in cash, default shall be 
made in the payment of any premium or interest on the day it 
shall become due, it will issue a paid up policy for a sum equal to 
the full amount of the ordinary annual premiums so paid, pro- 
vided written application be made therefor and this policy and all 
interest therein be surrendered within three months from the date 
of such default." This provision, although accompanied by some 
onerous conditions, was a long step in the direction of liberalizing 
the Life contract. It was in fact too liberal in promising paid up 
insurance "equal to the full amount of the ordinary annual 
premiums paid." 

Up to this time (1867) the company had paid but one divi- 
dend, which was allowed in the year 1864, and now in 1867, for 
the first time, the promise of dividends was inserted in the policy 



Liberalization of the Policy Contract 295 

contract in the following words : "At each distribution of the 
surplus after three years from the date hereof a due proportion 
of such surplus on each and every year's business during the 
continuance of this policy will be returned to the said assured." 

Permission was also given to travel to or from California and 
for travel or residence in any part of America or Europe north 
of the Tropic of Cancer. 

In this year the company removed from its policies the pro- 
vision for forfeiture in case of suicide, which, however, was in 
part restored in 1872 by the following provision: "In every case 



\s%. 



-_j at*. mus CtL^*t?._ J&&' 

.fe THIS POLIG7 OF ASSURANCE ^ 

Policy Heading used from March, i86j to June, 1865 

where this policy shall cease or become null and void all payments 
thereon shall be forfeited to the company, except as above pro- 
vided and except that if the person whose life is insured die by 
his or her own hand or act the company shall return the pre- 
miums received." 

In 1869 the dividend clause above quoted was changed so as 
to provide that at each distribution after two years a due propor- 
tion of the surplus should be returned to the assured. 

In 1872 the company discontinued the annual premium note 
plan and thereafter no policies were written containing the privilege 
of giving notes for a portion of each annual premium, although 
a modified premium loan plan has been continued in the practice 
of the company. In the same year it was provided that fractional 
paid up policies should be non-participating, and the time after 
lapse of the original policy within which paid up insurance 
could be claimed was extended from three months to six months. 

In' 1880 the company amended the provision relating to the 
method of determining the amount of paid up insurance to be 
granted in case of default in premium payment, and the new 



296 Liberalization of the Policy Contract 

clause was as follows : "If, after three or more annual premiums 
shall have been paid in cash, default shall be made in the payment 
of any premium or interest on the day it shall become due, it will 
issue a paid up policy for such sum as the reserve upon this policy 
by the now existing standard of the State of Wisconsin will then 
purchase as a single premium at the company's published rates, 
but without further participation in dividends," with the proviso 
added that the policy be freed from all indebtedness to the com- 
pany and that written application be made therefor and the policy 
surrendered in the lifetime of the insured, within six months from 







%: ^fc^ 



111 



Policy Heading used from June, 186 5 to July 15, 1896 

the date of such default. The standard of reserve referred to was 
the American 4 l / 2 % table. At the same time the company inserted 
in the contracts the following rule of construction : "This policy 
is a contract made and to be performed in the State of Wisconsin, 
and shall be construed only according to the charter of the com- 
pany and the laws of said state." This clause was removed from 
all policy contracts in 1892. 

In 1884 beneficial changes were made in the form and appear- 
ance of the policy and the arrangement of its different parts, a 
portion of the conditions being transferred to the second page, and 
all prohibitions made inoperative after three years from the date 
of the policy, except that the company retained the right to cancel 
the policy for intemperance during the lifetime of the insured, but 
in that case would pay the amount of the legal reserve held, on 
condition that the policy be surrendered during the lifetime of the 



Liberalisation of the Policy Contract 297 

insured and within one year from the date of cancellation. It was 
further provided that after three years from date of contract the 
company should not have the right to contest a policy after the 
death of the insured (unless such policy had been canceled by the 
company during the policyholder's lifetime) for any non-fraudu- 
lent representation in the application. In the same year the dividend 
clause of the policy was changed so as to promise to pay dividends 
"according to the company's usage" and the following prohibition 
introduced : "But no dividend shall be payable at or after the 
time default may be made in the payment of any premium." 

THE 

western m 

3-nsurancc (Lompanv. ^ v , 
mvtAUMtm pglioy. 

Installment Policy Heading, December, 1892 to July, i8p6 

In 1892 the company adopted the "automatic paid up policy 
provision" applicable to all policies then in force, a measure justly 
regarded as of great importance to the policyholders. For a num- 
ber of years prior to 1892 paid up insurance had been granted in 
case of default in the premium payment, but subject to the re- 
quirement that written request for same must be made to the 
company within three months (later changed to six months) 
from the date of the default in premium payment. The auto- 
matic paid up provision swept away all conditions and secured 
the paid up insurance without any action on the part of the policy 
holder. The basis of this action was declared to be that the policy 
holder was entitled to paid up insurance because of the premiums 
he had paid prior to lapse, and the failure to surrender the original 
contract within six months from date of lapse should not be 
allowed to destroy that right. 

At the same time (1892) the restrictions as to travel, occu- 
pation, etc., became inoperative after two years. 



298 



Liberalization of the Policy Contract 



In 1896 the company adopted guaranteed cash, loan and paid 
up policy values, which were incorporated in tabular form in the 
policy contract. This was a wide departure from former methods, 
as up to that date no contract had contained any promise of an- 
nual cash surrender value, with the single exception of the so- 
called Deposit policy, which was adopted for a special purpose 
and as a substitute for short term endowments, and was discon- 
tinued in 1878. Between the years 1896 and 1899 the company 
had entirely changed its attitude with reference to cash surrender 
values, twice increasing such values and taking rank with the 




Insurance^ ompanij. 

Policy Heading used from July 15, 1896 to February 1, i8qq 





companies making guaranteed cash and loan values an important 
element in the business. 

At this date may be noted the privilege of changing bene- 
ficiary, which was for the first time introduced in the policy con- 
tract. This provision gave rise to much discussion in the insur- 
ance world as to the legal right to dispossess the person named 
in the contract as beneficiary or to substitute a new beneficiary 
simply upon the request of the insured. 

It had long been the practice of the company to permit the 
restoration of annual dividend policies within one year after de- 
fault in premium payment, but a provision allowing this privilege 
was now introduced in the policy. 



Liberalization of the Policy Contract 299 

At an early date in the history of the company the question of 
the reserve became of much importance. In 1870 the company 
had placed all of its insurance on a 4% reserve basis according to 
the Actuaries' Table of Mortality, and that basis was maintained 
until the year 1899, when, as heretofore stated in detailing the 
events of that year, a change was made to the 3% reserve accord- 
ing to the American Table of Mortality. By this action the com- 
pany reasserted its claim that perfect security of its contracts was 
made of first importance in its business. The adoption of the 
new reserve standard necessitated a change in premium rates and 
the adoption of new policy forms. 



"""-' -— 

s ""-*"—- , '/J// ////j • /r//ry /■/■ r /. ;;///// //rr s 
Policy Heading used from February 1, 1899 to October 1, 1905 

At this time the Ordinary Life policy had expanded to about 
four times its original size, and it became necessary to transfer 
some of the provisions to the fourth page of the policy. The 
contract contained as a new feature the installment provisions by 
which the death claim might be made payable to the beneficiary 
in annual installments instead of in one sum. A provision was 
introduced in the contract for extending installment benefits be- 
yond the life of the beneficiary, and the following clause was 
inserted in the policy: "The insured, subject to the rights of 
any assignee of this policy, shall have the right at any time, if 
the continuous installment feature is not in force as a part of 
this contract, to nominate in writing a beneficiary in succession, 
to be known as 'contingent beneficiary,' to whom the remaining 
installments shall be paid as due, provided all of the beneficiaries 



3°o 



Liberalization of the Policy Contract 



die before receiving all of the designated number of install- 
ments." For the first time there was also incorporated in the 
policy a provision giving the insured the choice of receiving 
dividends annually in cash or additional insurance, or of select- 
ing a tontine dividend period of either 10, 15 or 20 years, the 
tontine feature being made an option in all regular policies, and 
thus doing away with the separate forms previously used for 
Semi Tontine contracts. 

In the year 1900 further changes and improvements were 
made in the policy, and a provision was introduced allowing 



PAKY 




Policy Heading used from October /, iQOf, to January 1, iqo? 



thirty days' grace in payment of all premiums except the first, 
subject to an interest charge at not to exceed the rate of six per 
centum per annum, and the limit of time for restoration of lapsed 
annual dividend policies was increased from one year to five 
years. 

At this same date the company adopted and incorporated in 
the policy contract three options known as "A," "B" and "C" as 
follows : 

OPTION A. 

"To have the whole or any part not less than $1,000 of the pro- 
ceeds of this policy at the death of the insured, including any dividend 
additions then in force, retained by the company until the death of the 
last surviving beneficiary or contingent beneficiary, the company in 
the meantime to pay an annuity equal to three per cent of the amount 
so retained, the first annuity being payable one year after the death of 
the insured. 

"At the time any annuity payment becomes due, the beneficiary or 



Liberalization of the Policy Contract 301 

beneficiaries, if of lawful age, provided the company has not been 
otherwise directed by the insured, shall have the right, upon due sur- 
render of this policy, to withdraw the amount so retained by the com- 
pany, in addition to such annuity payment, and if said amount be so 
withdrawn the annuity payments shall cease." 

OPTION B. 

"To have the whole or any part not less than $1,000 of the proceeds 
of this policy at the death of the insured, including any dividend addi- 
tions then in force, paid in a specified number of annual installments 
as per the first table below, which shall apply pro rata per $1,000 for 
the amount to be so paid, the first installment being payable imme- 
diately. 

"The number of installments may be changed at any time by the 
insured, but any such change must be effected prior to the payment of 
the first installment. 

"The installments remaining unpaid will be commuted upon the 
basis of three per cent compound interest, and paid in one sum, at 
any time when an installment is due, upon written request of the bene- 
ficiary or beneficiaries, if of lawful age, and due surrender of this 
policy, provided the insured shall not have otherwise directed in 
writing." 

OPTION C. 

"To have the whole or any part not less than $1,000 of the pro- 
ceeds of this policy at the death of the insured, including any dividend 
additions then in force, paid in annual installments continuous during 
the lifetime of any beneficiary of an amount corresponding to that 
stated in the table below for the age of the beneficiary or beneficiaries 
at the date of death of the insured, which table shall apply pro rata 
per $1,000 for the amount to be so paid, the first installment being pay- 
able immediately. 

"If there be more than one beneficiary. the amount to be so paid, 
shall be considered as divided into equal parts and the amount of each 
beneficiary's annual installment shall be determined pro rata for the 
age attained." 

Options "B" and "C" were supplemented by appropriate 
tables illustrating the installment payments and the following 
provision included in the policy contract: "All stipulated pay- 
ments under Options "A" and "B," and the first twenty-five 
stipulated payments under Option "C," will be increased by such 
annual dividends as may be apportioned by the company." 

In the year 1901 further changes for the benefit of the policy 
holder were adopted. Policies issued prior to this time provided 



302 Liberalization of the Policy Contract 

for cash values upon reaching the fifth policy year, but at this 
date the provision was changed so as to allow such values begin- 
ning with the third year. At the same time the amount of the 
cash surrender value was increased, with the provision that the 
increased values should be extended to all 3% reserve policies in 
force. 

In the Ordinary Life form adopted in 1905 the liability clause 
was again liberalized by the insertion of the following: "After 
one year from the date hereof, the liability of the company under 
this policy shall not be disputed on account of any misstatement 

The Northwestern Mutual Life 
Insurance Company 



Policy Heading used from January 1, icjoj 

in the application, unless it relates to some fact material to the 
risk and shall have been intentionally made. Misstatement of 
age, made without fraudulent intent, will be adjusted by the 
company in accordance with the published premium rate now in 
use for the correct age." 

From 1905 to 1907 no change was made in the Ordinary Life 
form, but in the latter year the contract was further simplified, 
and the company obligated itself to pay the sum insured "upon 
receipt and approval of proof of the death of said insured while 
this policy is in full force," etc., and the time for which payment 
of the first dividend should be deferred was changed from two 
years to one year by the following provision : "This policy shall, 
beginning one year from the date hereof and annually thereafter, 
share in the surplus as apportioned by the company until all con- 
tributions to the surplus found to have arisen from this policy 
shall have been returned." The period of grace in payment of 
premiums was changed from thirty days to one month. In place 
of the tontine dividend feature, discontinued in the year 1905, an 
option was introduced providing that dividends might be left to 



Liberalization of the Policy Contract 303 

accumulate to the credit of the policy with interest at three per 
cent per annum and payable at maturity of the policy, but with- 
drawable on any anniversary. 

The company also adopted and inserted in the policy an auto- 
matic premium loan provision as follows: "If any premium on 
this policy shall not be paid when due the same, without action 
on the part of the insured, and provided this feature shall not 
previously have been waived in writing filed at this office, shall be 
charged as an automatic loan at five per cent interest if the then 
loan value of the policy, including existing additions, be suffi- 
cient to cover such loan in addition to any existing indebtedness 
and accrued interest. If the loan value * * * shall not be 
sufficient to pay the entire premium due, then it shall be used, if 
sufficient, to pay the premium for a shorter period, but not less 
than an entire quarterly premium," etc. 

This automatic provision was a substitute for automatic paid 
up insurance previously allowed, but the privilege of taking paid 
up or extended term insurance upon request duly made to the 
company was preserved in the contract. 

A new clause, substantially as follows, was also included: 
"Whenever the reserve at the end of a policy year, taken together 
with the reserve on existing additions, shall be equal to or greater 
than the net single premium by the American Experience Table 
of Mortality with three per cent interest for an amount of in- 
surance equal to the face amount of the policy, the company will 
upon request (if the policy be freed from indebtedness) endorse 
the policy as full paid participating insurance payable at the same 
time and in the same manner as the original policy for such an 
amount as the then combined reserve on policy and additions will 
purchase at the net single premium rate ; or, whenever the reserve 
on policy and additions shall be equal to or greater than the face 
amount of the policy, the company will then upon due surrender 
pay as a matured endowment the amount of the then combined 
reserve on policy and additions, less any existing indebtedness to 
the company." 

At the beginning of 1908 a further revision of the policy con- 
tracts of the company was found necessary in order to conform 
with the new laws of several states enacted in 1907, and the prin- 
cipal changes and provisions were as follows : 



304 Liberalization of the Policy Contract 

"This policy with the application therefor contains the entire 
contract between the parties, and all statements made by the in- 
sured shall, in the absence of fraud, be deemed representations 
and not warranties. No such statement shall avoid or be used 
in defense to a claim under the policy unless it is contained in the 
application, a copy of which is hereto attached." 

The provision for grace in premium payment was changed 
from one month to thirty-one days, subject to an interest charge 
of five per cent per annum. 

The automatic premium loan provision adopted in 1907 was 
withdrawn and a provision for automatic extended term insur- 
ance substituted, but the privilege of securing automatic premium 
loan, or of paid up insurance as a substitute for automatic term 
extension upon proper request filed with the company was still 
preserved to the policyholder. 

The gradual development of the Ordinary Life policy con- 
tract of this company having thus been traced through a period 
of fifty years, it remains to call attention to the other forms of 
insurance contracts issued by the company in conjunction with 
that form of policy during such period. 

LIMITED PAYMENT LlEE, ENDOWMENT AND MISCELLANEOUS FORMS 
OE INSURANCE CONTRACTS, AND ANNUITIES. 

As noted at the outset the company for the first two years of 
its existence limited its insurance contracts to the Ordinary or 
Whole Life form, but in i860 it was decided that other forms 
should be introduced, and policy No. 409 was issued as the first 
life contract with a limited number of annual premiums — 10- Year 
Life ; and policy No. 648 as the first Endowment. 

In 1865 the first Limited Payment Endowment made its ap- 
pearance, being on the 10 payment plan, and such Endowments 
were made payable upon the insured attaining a given age. 

At this time the company introduced an amended form of the 
provision in regard to intemperance, to the effect that if the "per- 
son whose life is insured shall become in any sense an inebriate 
the company shall have the right to declare the policy canceled 
and shall be absolved from all liability on payment of the sur- 
render value as determined by the company's table ;" and also 
a new provision that if the insured shall "engage in, aid or abet 



Liberalization of the Policy Contract 305 

any insurrection against the government of the United States 
or any state thereof, the policy shall be null and void." A change 
of some importance was also made in the Endowment forms by 
omitting the "heirs at law" clause and providing that in case of 
the death of the beneficiary before the death of the insured the 
amount of the insurance should be payable to the executors, ad- 
ministrators or assigns (or, as it was in some forms, "heirs or 
assigns") of the person whose life is insured, but the "heirs at 
law" clause was continued in the Life forms. 

Up to this time the policy forms had contained the provision 
that "if the declarations made by or for the assured in the ap- 
plication for the policy should be found in any respect untrue, 
then the policy shall be null and void," but in 1865 this provision 
was modified so as to read, "if any of the statements or declara- 
tions in the application for this policy shall be found in any 
material respect untrue, then the policy shall be null and void." 

For quite a period succeeding 1865 the company issued a 
large number of Limited Payment Life and Endowment con- 
tracts, the preference being given to the 10 payment plan, and 
the amended provision for paid up insurance contained in such 
policies was as follows : "And the said company further promises 
and agrees that if default shall be made in the payment of any 
premium, it will pay as above agreed as many tenth parts of the 
original sum assured as there shall have been complete annual 
premiums paid at the time of such default. But, in order to secure 
such proportion of the policy, all premium notes must be taken 
up or the interest thereon be paid annually in cash on the date 
of the annual maturity of the premium until the notes are can- 
celed by returns of the surplus, or the whole policy will be for- 
feited." 

For the Ordinary Endowment, with annual premium pay- 
ments continuing through the Endowment period, the provision 
for paid-up was slightly less liberal as it required payment of all 
outstanding notes with interest in cash within three months from 
date of default in premium as conditions upon which paid up in- 
surance would be granted. 

To May 1, 1869, the only new forms of insurance contracts in- 
troduced and not heretofore described were the 5 payment En- 
dowment policies, Joint Endowments, 5, 15 and 20 payment Life 



306 Liberalisation of the Policy Contract 

plans, Non-participating Life contracts, Return Premium Life 
policies and Child's Endowments. Under these new forms of 
contracts (except such as were non-participating) dividends were 

now payable annually after too 
years, as on the Ordinary Life 
plan. 

The new Limited Payment 
forms also contained a provision 
giving the insured three months 
succeeding the date of the annual 
maturity of the premium within 
which to pay the interest on the 
^ • | notes (if any) in order to avoid 

5^^ a forfeiture of his claim to paid 

H^ up insurance in case of default in 

"' the premium payment. 
'• At this same date the prohibi- 

tion against hazardous employ- 

-, ,, ™. . 7 ment was liberalized by except- 

Emory McClintock J r 

ing employment as passenger or 

sleeping-car conductor, mail agent, express messenger or bag- 
gage master ; or in ocean navigation the employment as master, 
mate or pilot of first class steam or sailing vessels plying between 
ports within the limits before mentioned. 

The practice of attaching a copy of the application to each 
policy was also adopted at this time. 

The Non-participating Life policy was issued on a form simi- 
lar to that for the Ordinary Life, but in place of the usual provi- 
sion for annual dividends the following was inserted : "In con- 
sideration of the reduced rate of premium upon this policy 
(which is of the class known as non-participating) all claim for 
dividends is waived by the claimants under this policy ; of which 
waiver the acceptance of the policy is due and sufficient acknowl- 
edgment." 

The Return Premium Life contract was also similar to the 
Ordinary Life form, but contained this special provision : "The 
company further agrees that at the maturity of this policy it will 
pay in addition to the amount thereof the full sum of all premiums 
that have been received upon said policy at such time; in con- 



Liberalization of the Policy Contract 307 

sideration whereof all claim for dividends is waived by the claim- 
ants under this policy, of which waiver the acceptance of the 
policy is due and sufficient acknowledgment." 

The Child's Endowment was made payable to a trustee or 
guardian for the use and benefit of the insured upon attaining a 
given age. In case of the death of the insured before the period 
fixed for payment of the Endowment, all premiums paid were to 
be returned to the trustee or guardian without interest or divi- 
dends. 

In 1872 the company discontinued a number of its plans for 
short term Endowment and substituted a contract known as the 
Deposit policy, making use of various forms limiting the pre- 
mium payments to five years, ten years or fifteeen years ; also 
forms for single premium deposit payable in five years, five 
premium payable in ten years and ten premium payable in fifteen 
years, etc. These policies provided for payment of the face of the 
insurance in case of death, but accompanied by this special pro- 
vision : "And the said company further promises and agrees that 
a portion of the full year's premium after it shall have been com- 
pletely paid shall be held in deposit to be applied towards payment 
of the sum insured in case of death, otherwise to be paid without 
interest on demand and upon surrender of this policy to the per- 
son or persons entitled thereto or interested therein, the sums to 
be so held from time to time being stated in a schedule hereto 
annexed." The fact that the portion of the annual premiums so 
held "in deposit," and which might become payable at stated 
periods as a surrender value, was very large, served to render this 
form of insurance attractive, but the entire plan was soon discon- 
tinued and short term Endowment forms, which had been tempo- 
rarily suspended, were resumed. 

In the year 1875 the company introduced a new plan of in- 
surance known as Addition Life, but sometimes called Decreas- 
ing Life. This plan was continued, with some modifications in 
the policy contract until 1888. Its purpose was to furnish a low 
premium insurance, being a combination of two-thirds ordinary 
life insurance and one-third term insurance. The premium writ- 
ten in the contract was the rate in use by the company for Ordi- 
nary Life on the two-thirds life part of the contract, with a pro- 
vision for application of the annual dividends towards continuing 



308 Liberalization of the Policy Contract 

in force the one-third term insurance. The provision in the policy 
with reference to application of the dividends was as follows : 
"At each distribution of the surplus after two years from the 
date hereof a due proportion of such surplus shall be credited to 
this policy and applied to purchase an addition to the amount 
hereby insured for the then ensuing policy year, but, including 
such amount, not to exceed the sum hereby insured for the first 
two years, the remainder, if any, being applied to reduce the 
premium for said year." 

This plan did furnish insurance at a less cost than the Ordi- 
nary Life rate during the earlier years of the policy contracts, the 
advantage becoming less apparent as the cost of the term insur- 
ance increased with the advancing age of the policyholder. 

In this year (1875) were issued Term policies, having a low 
rate of premium and being similar to the Non-participating Life 
policy except that the insurance continued for a limited number of 
years only and expired without surrender value at the end of the 
period. 

In the year 1881 the company took important action in the 
adoption of the so-called Tontine Dividend plan, a contract for 
investment coupled with insurance. It was not then entirely new 
in this country, having been adopted by some of the New York 
companies more than ten years earlier. The plan first adopted 
was the Full Tontine and its distinguishing feature was expressed 
in the following special conditions : 

"No dividend shall be allowed or paid upon this policy unless the 
person whose life is hereby insured shall survive the completion of 
the Tontine Dividend Period and unless this policy shall then be in 
force." 

"Previous to the completion of its Tontine Dividend Period this 
policy shall have no surrender value in a paid up policy or otherwise." 

"The foregoing special stipulations being contained in all policies 
issued on the Tontine Dividend plan, all savings made in consequence 
of them shall be apportioned equitably among such policies issued on 
that plan as shall complete their Tontine Dividend Periods." 

The tontine dividend periods were either 10, 15 or 20 years 
according to the choice of the insured at the time of making his 
application. It will be observed, under the conditions quoted, 
that the insured would forfeit all surplus earning in case of death 



Liberalisation of the Policy Contract 309 

within the stipulated tontine dividend period, or would forfeit 
both reserve and surplus in case of failure to pay the required 
premium at any time within the tontine dividend period. In case 
of default in premium payment the insured was allowed only 
sixty days within which to restore the policy upon evidence of 
good health. The Full Tontine Dividend plan was not received 
with much favor by the insuring public and comparatively few 
policies of that form were issued. Presumably the provision for 
forfeiture of both surplus and reserve in case of premium default 
was found objectionable, as it would deprive the insured of the 
right to fractional paid up insurance he would otherwise have 
secured. This form of policy was in use by the Northwestern 
for a period of five years and discontinued in October 1885. 
Meantime, and in November 1883, the Semi Tontine plan was 
adopted by the company and immediately advanced in public 
favor. This contract was a modification of the Full Tontine and 
provided for forfeiture of the surplus only in case of prior death 
or non-payment of premium, and paid up insurance was guar- 
anteed by the contract in case of premium default and surrender 
of policy. The policy forms for the Semi Tontine plan were 
quite similar to those already in use, being adapted by insertion of 
the tontine provisions and options of settlement in the Ordinary 
Life, Limited Payment Life and the different forms of Endow- 
ment policies. This plan of Semi Tontine insurance was in use, 
giving the company a very large amount of business, for a period 
of twenty-two years succeeding its adoption. It was finally dis- 
continued in the year 1905. 

This company has paid out and still holds for future pay- 
ment many millions of dollars in surplus earned by Semi Tontine 
contracts. The tontine dividends allowed by the company as the 
result of the accumulation of surplus for the stated dividend 
periods have been large and in the main satisfactory to the policy 
holders because furnishing an investment at a high rate of inter- 
est in addition to the value of the insurance protection during the 
respective periods. Such policies guaranteed payment of the full 
reserve in cash as a surrender value, if desired, at the completion 
of the tontine dividend period. 

In this same year (1883) a new form of insurance was also 
introduced called Semi Endowment, and the policy contract pro- 



3io 



Liberalization of the Policy Contract 



,- 




/. C. Cratrford 



vided for a stipulated amount of insurance to continue for the 
term of twenty years only, and in case of death within that period 
the full face of the insurance to be paid as a claim, but if 

the insured should survive the 
twenty years, one-half of the 
amount insured should be paid in 
cash as an Endowment to the per- 
son entitled to receive the same; 
otherwise the policy provisions 
were about the same as found in 
the Life contracts. In this con- 
tract the provision that suicide 
should void the policy was limited 
to the first three years. 

In 1890 the company for the 
first time introduced a system of 
Annuity contracts, consisting of 
Immediate Annuities, with first 
annuity payment to begin in 
one year from date of contract ; 
single and annual premium Deferred Annuity, either independ- 
ent of, or coupled with, insurance, etc. These contracts were 
adapted to the 4% reserve basis then in use by the company and 
have been issued without material change in form under the pre- 
vailing 3% reserve system. The company has at no time issued 
or had in force any large number of annuity contracts, and it 
would appear that the system is not largely in favor in this coun- 
try. 

In 1892 a new policy provision was adopted known as the Life 
Option and applicable to Endowments, as follows : 

"At the maturity of this (endowment) contract the face of the 
policy may be withdrawn in cash, or may without medical examina- 
tion be applied to purchase a participating paid up Life policy of like 
amount and a life annuity equal to four (4) per cent of such paid up 
policy, and any surplus or dividend or any dividend addition that may 
be due and payable with the face of this policy at its maturity may be 
used to correspondingly increase both the paid up Life policy and the 
annuity or the annuity alone." 

In December 1894 the company introduced its first form of 
Renewable Term insurance. This was a low premium contract 



Liberalization of the Policy Contract 311 

providing term insurance for a period of ten years with the fol- 
lowing clause for a renewal, to-wit : 

"At the expiration of the full term of this policy it may be renewed 
for successive ten year periods without medical re-examination on 
condition that at least thirty days before the expiration of each term 
the insured shall give written notice to the company of his desire to 
renew, and at each renewal the premium shall be increased to corre- 
spond with the company's present published rate for the then age of 
the insured." 

The privilege was also given in such contracts to change to 
other forms of participating policies in use by the company under 
stated conditions. These policies provided for accumulation of 
surplus for ten years, with the following dividend provision : 

"If this policy shall be renewed at the end of its term and at the 
end of any subsequent ten year term it shall at each such renewal 
share in the surplus contributed by policies of its class according to 
its contribution to such surplus, but each such dividend to which it 
may become entitled shall be allowed only in permanent reduction of 
future premiums." 

This plan of Renewable Term was continued for a period of 
about thirteen years and during that time it was favorably re- 
ceived. A large amount of insurance was put in force, but, as 
will appear later, the company found it advisable to modify the 
privilege of renewal for successive ten year periods by a new 
form of contract. 

In 1896 the company issued a series of policies providing for 
payment to the beneficiary in annual installments instead of in 
one sum, at the option of the insured. The clause relating to 
change of beneficiary heretofore noted, was also incorporated in 
policies of this date. 

In the year 1899 the company adopted a form of contract 
known as Insurance and Annuity, which was adapted to the 
different forms of Ordinary and Limited Payment Life policies. 
It provided for the ordinary insurance protection, but in addition 
the beneficiary was to receive an annuity of a specified amount 
and term of years to commence at the death of the insured, and 
in one year after the termination of such annuity the principal 
amount of the insurance became payable. This contract was but 
little used and after a short time was discontinued. 



312 



Liberalization of the Policy Contract 




F. C. Hemsing 



In the year 1902 a plan known as Partnership insurance was 
introduced. The plan did not necessitate a considerable change 
from the ordinary forms in use, except with respect to beneficiar- 
ies and the usual privilege of set- 
tlement by installments, those pro- 
visions being omitted from policies 
of this class. A considerable 
amount of insurance on this plan 
has been issued and is being is- 
sued to corporations and business 
partnerships, the insurance being 
placed upon a selected member of 
a firm for the benefit of the co- 
partnership, or upon the life of 
an official or skilled employee for 
the benefit of a corporation. 

In the year 1905 the Renewable 
Term plan with ten year accu- 
mulation of surplus was discon- 
tinued and a new form of policy 
issued providing for annual dividends in accordance with the gen- 
eral plan of the company. The privilege of renewal for succes- 
sive ten year periods was continued, the premiums to be increas- 
ed for each new term according to the attained age of the insured, 
but the privilege of change to another form of contract from 
original date was limited to the first ten years of the Term policy. 
In 1907 the Executive Committee authorized the adoption of 
a special form of policy under the title of Modified Life. This 
contract differs from the Ordinary Life or Limited Payment 
Life forms only with respect to the duration of the insurance, the 
period being limited strictly to the first 15 or 20 years (according 
to the decision of the company) at the end of which time the in- 
surance is to be terminated by the payment of a stipulated cash 
surrender value. The purpose of the plan is to furnish insurance 
to applicants who desire life contracts but do not on examina- 
tion conform strictly to the standard of physical excellence estab- 
lished by the Medical Department of the company, but neverthe- 
less are considered as safe and desirable risks for the period spec- 
ified, at the end of which the contract is to terminate. At present 



Liberalisation of the Policy Contract 313 

this form of insurance is issued upon the Ordinary Life or 20 
Payment Life rate of premium, according to the choice of the 
applicant. 

In January 1908 the company discontinued the plan for Re- 
newable Term insurance and in lieu thereof adopted the Conver- 
tible Term policy, which by its terms limits the insurance to a 
period of ten years, with no renewal. This policy provides for 
annual dividends and grants the privilege, limited to the first 
seven years of the contract, of changing without medical exami- 
nation to any form of Life or Endowment insurance issued by the 
company, subject to specified conditions. The conversion to a 
new plan may be from the original date of the Term contract or 
from the date at which the change in plan is made, and if the 
latter, it is provided that the age of the insured shall not exceed 
sixty years. 

The foregoing describes the principal forms of Insurance and 
Annuity contracts adopted and issued by the company, as well as 
the many changes made therein, during the half century since its 
organization. 

Increased benefits to members without increased cost has at 
all times been the aim. 



The Medical Department 



THE Medical department of a life insurance company is 
charged with the final duty of selection, and selection is 
one of the great life insurance functions. It requires ex- 
pert, professional knowledge and the exercise of keen judgment. 

The present staff of the Medical department is as fol- 
lows : Medical Director, John W. Fisher, M. D. ; Assistant 
Medical Director, George A. Harlow, M. D. ; Second Assist- 
ant Medical Director, William Thorndike, M. D., and Third 
Assistant Medical Director, David E. W. Wenstrand, M. D. 

John Welton Fisher was born at Terre Haute, Indiana, Sep- 
tember 10, 1848; graduated Wisconsin State University, class 
1875 ; Rush Medical, class 1877; served as interne in Cook County 
Hospital; in August 1878, appointed Resident Physician, State 
Hospital for the Insane; resigned August 1881 ; engaged in prac- 
tice of medicine and surgery in Milwaukee ; appointed local Med- 
ical Examiner for company in 1884; appointed Assistant Medical 
Director, December 15, 1885, giving only a portion of his time to 
the work until July 1888; appointed Medical Director, October 
21, 1896. 

George Arthur Harlow was born in Augusta, Maine, July 15, 
1867; graduated Amherst College, 1889; Harvard Medical School, 
class 1893; was House Surgeon, Boston City Hospital, from June 
1902 to January 1904 ; House Surgeon, Boston Lying-in Hospital, 
from May 1904 to October 1904; went to Europe in November 
1904 and remained in Berlin and Vienna, as a student, until fall 
of 1905 ; returned to Boston and entered general practice ; soon 
thereafter was appointed Assistant Surgeon to Boston Dispen- 
sary; continued in general practice to 1899, when he came to the 
company. 

William Thorndike was born in Milwaukee, August 5, 1870; 
attended public schools of Milwaukee, and Nobles' School of 
Boston ; graduated at Harvard University, with the degree of 
A. B., 1892, and M. D., 1896; was interne at Boston City Hos- 





■J*>%tf§> 



The Medical Department 



317 



pital from July I, 1895 to January 1, 1897; interne at the Boston 
Lying-in Hospital from March 1897 to September 1897; engaged 
in general practice in Milwaukee from November 1897 to July 
1903, when he entered the Medical department. 

David E. W. Wenstrand was born in Sweden, May 6, 1876; 
graduated from Chicago High School, in 1894; attended North- 
western University, Evanston, 1894-1896; graduated from the 
Medical side of that University in 1900; was interne in the 
Cook County Hospital, Chicago, from 1900 to 1902; Fellow in 

Pathology, Rush 
Medical, 1902- 1903 
and came to the de- 
partment October 1, 
1903. 

The Northwestern 
has the distinction of 
never having placed 
an insurance risk on 
its books unless the 
applicant had fi r s t 
been examined by a 
physician who made 
full report thereof, on 
forms furnished by 
the company. 

The blanks used 
from its organization 
require a full state- 
ment as to the age and 
state of health of the 
surviving, and cause of death of the deceased, members of an 
applicant's family, his parents, brothers, sisters and grandparents ; 
also full details relating to personal health, habits in the use of 
stimulants, diseases suffered since childhood, etc. In addition, 
and up to 1887, an applicant was required to furnish a statement 
from his physician on blanks prepared by the company, giving 
details as to past personal health, and also a statement as to habits, 
hazard and the like, from a friend. 

Dr. Lyman J. Barrows, of Janesville, made the first medical 




Dr. Lewis McKnight 



318 The Medical Department 

examination for the company, that of General Johnston, to whom 
policy No. i was issued, and, indeed, examined the majority of 
the original members whose names appear in the list found on 
earlier pages of this work. 

The mortality rate has been computed to January I, 1908 on 
this original class of members, showing the actual to expected 
rate to be 83.17 per cent of the Actuaries' Table. 

Dr. Barrows was examined by Dr. C. G. Pierce, November 2, 
1858, and received policy No. 4, which was in force at the date of 
his death, January 24, 1895. He remained a local Examiner for 
the company until he died. 

Doctors Lewis McKnight, D. T. Brown and O. P. Wolcott 
were appointed local Examiners in November 1858, and Dr. E. B. 
Wolcott was designated Consulting Physician, December 18, 1858. 
Cases in which doubt existed as to the insurability of applicants 
were referred to him for an opinion, and when he was not avail- 
able, to Dr. McKnight. Dr. Wolcott served in this capacity until 
October 1864, when Dr. McKnight was appointed Medical 
Director. 

Dr. McKnight, who was examined by Dr. E. B. Wolcott, 
received policy No. 28, an Ordinary Life, with premiums payable 
semi-annually. This policy remained in force to the date of Dr. 
McKnight's death and upon it he paid a total of seventy-six semi- 
annual premiums. 

Dr. McKnight, who was the first Medical Director, was born 
at Bordentown, New Jersey, November 2, 1817; graduated from 
Princeton in 1839, and two years later from the Medical depart- 
ment of the University of Pennsylvania ; spent the following year 
in Paris, devoting his time to hospitals and supplementary courses 
in surgery and medicine ; later located in Troy, New York, where 
he engaged in general practice until 1848, at which time he 
removed to Milwaukee, where he resided until his death, August 
21, 1896. He possessed in a great degree those Scottish qualities, 
tenacity of purpose and firmness of character, which, combined 
with rare kindliness of nature, particularly fitted him for the 
exacting duties of Medical Director. In the early years of his 
labors there was comparatively little experience in actual results 
to guide him in risk selection. Many of his rulings were based 
upon judgment and personal experience and were adopted by 



The Medical Department 



319 




Dr. George A. Harlow 



other life companies, serving for years as their guide. The result 
of his thirty-six years of intelligent, faithful and conscientious 
management of the Medical department is reflected in the favor- 
able mortality of the company as 
shown by the general count of 
1895, which included all the busi- 
ness placed on the books from its 
organization through that year. 
The average mortality rate for 
that period is only 68.70 per cent 
of the Actuaries' Table. In no 
year in the history of the company 
to include 1900, the date of the 
latest general mortality computa- 
tion, has the mortality rate ex- 
ceeded that of the tables on which 
premiums were based ; not even in 
the early years, when it was strug- 
gling for existence. Table No. 4 
exhibits the mortality rate com- 
puted separately on the issues of each year, as indicated, and for 
the entire period, showing that the rate of actual to expected mor- 
tality was 66.02 per cent of the Actuaries' Table. 

Two Medical Directors only have served the company during 
the first fifty years of its existence, and but two changes have 
occurred in the home office staff of the Medical department. 
These concern Charles E. Albright, M. D., and Harry Toulmin, 
M. D. The former, Second Assistant Medical Director, served 
until July 6, 1903, at which time he resigned. He subsequently 
joined the agency force of the company and has become a solicitor 
of the first rank. Doctor Harry Toulmin, of Philadelphia, was 
appointed Assistant Medical Director, July 20, 1898, serving the 
company faithfully until he resigned, October 21, 1899, to accept 
the position of Assistant Medical Director of the Penn Mutual 
Life Insurance company. 

The by-laws of the Northwestern define the duties of the 
Medical Director as follows : "To examine and pass upon all 
applications for insurance received by the company, and, with the 
approval of the President, to appoint all Medical Examiners and 



320 



The Medical Department 




Dr. William Thorndike 



have supervision over them." They further provide that he shall 
conduct all correspondence pertaining to the business of his 
department and keep all such records as are made necessary in 

the dispatch of such business, and 
generally, perform the usual serv- 
ices relating to the medical branch. 
The Assistant Medical Directors 
aid in the performance of these 
duties. 

The company adheres strictly 
to these by-laws and gives full 
support to the officials of the de- 
partment. 

The Committee on Insurance 
and Agencies shares responsibility 
in passing upon certain risks in- 
volving questions of hazard, 
travel, occupation or habits, in 
which a medical question is not 
involved. 

The fact that less than six per cent of all authorized applica- 
tions recommended by local Examiners have been rejected, shows 
the care exercised by the field force and local Examiners in the 
selection of risks. The Medical department has shown its appre- 
ciation of the co-operation of these important factors and realizes 
that such co-operation has at all times been important in securing 
the favorable mortality rate for which the company is noted. 

Medical Examiners are paid quarterly by draft direct from 
the Medical department. A card record is kept of all examina- 
tions made by each Examiner and a similar record of all deaths, 
showing date and cause of death. From this, the percentage of 
deaths to examinations, made by each Examiner can readily be 
determined at the end of each year, serving as a check on services 
performed. About 11,000 Examiners are required, to cover all 
of the territory in which the company transacts business. An 
average of 800 are appointed each year to fill vacancies caused by 
change of residence, death, resignation and dismissal. All ap- 
pointments are made direct from the home office after a careful 
investigation by the Medical department through the local Exam- 



The Medical De-partment 



32] 




Br. D. E. W. Wenstrand 



iners in adjoining localities, as to qualifications and fitness for the 
position. A Chief and an Alternate Examiner are appointed in 
nearly all localities in which the company does business. The 

Chief Examiner is required to 
make all the examinations within 
his territory, if posible. The Al- 
ternate Examiner is employed in 
the absence of the Chief, and to 
examine applicants for additional 
insurance who were previously 
examined by the Chief Examiner. 
This method of appointment and 
assignment of duties to Examiners 
has proven satisfactory, and the 
good results are reflected in the 
saving on mortality, especially in 
the first five year periods of the 
company's business where the ef- 
fect of medical selection is most 
marked. This saving has been 
apparent for a long term of years, as will be seen by reference 
to table No. 5. 

It is contended that a mutual company should place risks on 
as equal a footing as possible and adherence to this principle has 
prompted the Northwestern to avoid unhealthful localities where 
climatic conditions produce a rate of mortality above the average 
of the company. The Northwestern, therefore, does not insure 
residents of the states of Mississippi, Louisiana and Florida, nor 
persons residing in certain counties of various other states, be- 
cause of these conditions. 

About ten per cent of the business on the books at the present 
time is on residents of territory below Mason and Dixon's line, 
and it is of importance to know that the mortality on this business 
is about twenty-six per cent higher than upon the remaining 
ninety per cent north of that line. 

The mortality from organization to include 1875 was 79.14 per 
cent of the Actuaries' Table, and for the years 1885 to 1900, 
inclusive, was 54.77 per cent, an improvement of over twenty- 
four points due to restrictions in territory; discontinuance of 



322 



The Medical Department 



insurance on the lives of women ; improvement in examinations 
and in sanitary conditions ; more accurate data obtained from 
actual experience to guide the Medical department in selection ; 
a more experienced corps of solicitors and a greater percentage 
of high premium policies, especially the large volume of semi- 
tontine business placed on the books from 1881 to 1898. 

Reference to the table below will show that the mortality on 
females insured from the years 1858 to 1875, inclusive, was more 
than eighteen points greater than on males for the same period. 

TABLE NO. 1 

Comparative Mortality Among Insured Males and Females, Under 
Policies Issued From 1858 to 1875, Inclusive. 





MALES 


FEMALES 




Expected 


Actual 


Per cent 


Expected 


Actual 


Per Cent 


To 1875: 
1st year. . . . 
2d to 5th yr. . 
After 5 yrs. . 


$1,334,776 
2,983,920 
1,663,111 


$ 920,120 
2,525,789 
1,211,870 


68.93 

84.65 
72.87 


$104,195 

236,395 

97,575 


$103,000 

232,438 

87,350 


98.85 
98.33 
89.52 


Total . . . 


$5,981,807 


$4,657,779 


77.87 


$438,165 


$422,788 


96.49 



Number of policies under observation: Males, 66,970; Females, 
6,298. 

The four general mortality counts compiled by the Actuary's 
department (according to the Actuaries' Table) from the organ- 
ization of the company in November, 1858, to 1875; to 1885; to 
1895 and to 1900 are as follows: 



TABLE NO. 2 



Date 


Number of 
Policies 


Expected 


Number of 
Deaths 


Actual 


Per Cent 


1858-1875... 
1858-1885... 
1858-1895... 
1858-1900... 


69,257 
116,111 
281,797 
396,323 


$ 6,419,972 
17,531,090 
51,306,792 
83,983.259 


6,508 
15,394 
23,442 


$ 5,080,567 
13,527,180 
35,256,473 
55,441,939 


79.14 
77.16 
68.71 
66.02 



The history of the company shows that of the different forms 
of policies issued, those calling for the lowest premium have had 
the highest rate of mortality, as shown by the following table: 



The Medical Department 323 

TABLE NO. 3 

Mortality Experience, Different Forms of Policies from Dates indi- 
cated, to 1900. 

5 and 10 Year Term Policy . .Issue of 1868 to 1895 91.91 Per Cent. 

Non-participating Life " " 1870 to 1895 83.00 Per Cent. 

Addition Life " " 1875 to 1886 77.85 Per Cent. 

Ordinary Life " " 1858 to 1900 75.19 Per Cent. 

Limited Payment Life " " 1860 to 1900 59.87 Per Cent. 

Endowment " " 1860 to 1900 57.77 Per Cent. 

Tontine and Semi-Tontine.. " " 1881 to 1898 53.78 Per Cent. 

By reference to Table No. 7, it will be seen that the amount of 
insurance in force January 1, 1886, was $110,710,861. Twenty- 
two years later, January 1, 1908, the amount of insurance in force 
had increased to $881,563,592. Not a risk included in the vast 
amount was accepted except on individual merit. 

The mortality for the first fifteen years of this period, from 
1886 to 1900, both inclusive, was only 53 per cent of the Actuaries' 
Table. The mortality for the two cheapest forms of policies 
issued by the company, viz. : Renewable Term and Ordinary 
Life, a class of business in which the mortality is expected to be 
higher than in any other, has been computed for the years 1895 to 
1905, both inclusive, and found to be 56.70 per cent of the Table, 
and for the first five years, 54.42 per cent, indicating that the 
mortality, when computed on all the business accepted during the 
past twenty-two years, will be most favorable. 



324 The Medical Department 

TABLE No. 4 

Mortality From Organization to 1900, Inclusive 



RECAPITULATION 


Year of Issue 


Expected 


Actual 


Per cent 


1858 

1859 


37,907 
212,241 
278,840 
201,658 
344,165 
714,813 
1,552,695 
1,912,763 
2,022,857 
2,928,430 
3,137,94 1 
2,726,154 
1,864,602 
1,546,943 
1,553,308 
1,409,712 
1,397,274 
1,655,460 
1,544,709 
1,071,690 
1,099,478 
1.426,121 
1,413,949 
2,304,223 
2,229,246 
2,235,144 
2,330,273 
2,964,351 
3,270,416 
3,267,145 
3,888,080 
4,120,694 
4,373,254 
4,110,590 
3,711,269 
2,377,835 
2,170,053 
2,187,636 
1,808,001 
1,721,376 
1/605,089 


27,000 

146,200 

201,900 

153,100 

270,200 

484,280 

1,110,199 

1,350,029 

1,621,243 

2,389,599 

2,435,382 

2,345,188 

1,765,355 

1,329,103 

1,285,433 

1.094,565 

1,144,685 

1,337,679 

1,301,645 

820,209 

908,751 

991,238 

938,138 

1,491,699 

1,636,929 

1,614,491 

1.789,304 

2,004,113 

1,946,841 

1,977,849 

2,488,697 

2,251,223 

2,728,640 

2,037,511 

1,910,577 

1,183,092 

1,075,796 

1.126,853 

899,777 

759,727 

634.528 


71.23 

68.88 


I860 


72.41 


1861 


75.92 


1862 


78.51 


1863. . . 


67.75 


1864 


71.50 


1865 


70.58 


1866 


80.15 


1867 


81.60 


1868 


77.61 


1869 


86.03 


1870 


94.68 


1871 


85.92 


1872 


82.75 


1873 


77.64 


1874 


81.92 


1875 


80.80 


1876 


84.26 


1877 


76.53 


1878 


82.65 


1879 

1880 


69.51 
66.35 


1881 


64.74 


1882 


73.43 


1883 


72.23 


1884 


76.79 


1885 


67.61 


1886 


59.53 


1887 


60.54 


1888 




1889 




1890 




1891 


49.57 


1892 


51.48 


1893 


49.76 


1894 


49 58 


1895 


51.51 


1896 


49.77 


1897 


44.13 


1898 


38.91 


1899 


923,509 330,135 
331,362 113,036 


35.75 


1900 


34.11 






Grand Total 


83,983,259 55,441,939 


66.02 



The Medical Department 
TABLE No. 5 

Mortality Experience to Dec. 31st, 1900 



325 





FIRST 


FIVE YEARS 


AFTER 


FIVE YEARS 


Year o 
Issue 


Expected 


Actual 


Per 
Cent 


■ Expected 


Actual 


Per 

Cent 


1858 . . . 


. . 5,695 


5,000 


87.80 


32,212 


22,000 


68.30 


1859 . . . 


. . 20,557 


16,500 


80.26 


191,684 


129,700 


67.66 


1860 . . . 


. . 30,511 


13,500 


44.25 


248,329 


188,400 


75.87 


1861 . . . 


. . 25,232 


15,250 


60.44 


176,426 


137,850 


78.13 


1862 . . . 


. . 39,216 


33,500 


85.42 


304,949 


236,700 


77.62 


1863 . . . 


. . 83,681 


57,700 


68.95 


631,132 


426,580 


67.59 


1864 . . . 


. . 207,201 


147,600 


71.24 


1,345,494 


962,599 


71.54 


1865 . . . 


. . 273,572 


177,400 


64.85 


1,639,191 


1,172,629 


71.54 


1866 . . . 


. . 342,822 


263,700 


76.92 


1.680.035 


1,357,543 


80.80 


1867 . . . 


. . 655,640 


528,100 


80.55 


2,272,790 


1,861,499 


81.90 


1868 . . . 


. . 759,580 


544,328 


71.66 


2,378,364 


1.891,054 


79.51 


1869 . . . 


. . 671,866 


539,510 


80.30 


2,054,288 


1,805,678 


87.90 


1870 . . . 


. . 483,770 


522,850 


108.08 


1,380,832 


1,242,505 


89.98 


1871 . . . 


. . 375,170 


350,973 


93.55 


1,171,773 


978,130 


83.47 


1872 . . . 


. . 388,172 


288,246 


74.26 


1.165,136 


997,187 


85.59 


1873 . . . 


. . 315,355 


278,803 


88.41 


1,094,357 


815,762 


74.54 


1874 . . . 


. . 323,237 


338,058 


104.59 


1,074,037 


806,627 


75.10 


1875 . . . 


. . 380,045 


285,385 


75.09 


1,275,415 


1,052,294 


82.51 


1876 . . . 


. . 342,551 


299,909 


87.55 


1,202,158 


1,001,736 


83.33 


1877 . . . 


. . 250.867 


224,703 


89.57 


820,823 


595,506 


72.55 


1878 . . . 


. . 243,998 


179,370 


73.51 


855,480 


729,381 


85.26 


1879 . . . 


. . 323,968 


208,327 


64.30 


1,102,153 


782,911 


71.03 


1880 . . . 


. . 356,826 


191,963 


53.80 


1,057,123 


746,175 


70.59 


1881 . . . 


. . 616,522 


348,537 


56.53 


1,687,701 


1,143,162 


67.73 


1882 . . . 


. . 614, S13 


345,433 


56.19 


1,614,433 


1,291,496 


80.00 


1883 . . . 


. . 649,941 


3S4.109 


59.10 


1,585,203 


1,230,382 


77.62 


1884 . . . 


. . 703,889 


374,616 


53.22 


1,626,384 


1,414,688 


86.98 


1885 . . . 


. . 934,557 


495,534 


53.02 


2,029,794 


1,508,579 


74.32 


1886 . . . 


. . 1,111,127 


526,659 


47.40 


2,159,289 


1,420,182 


65.77 


1887 . . . 


. . 1,219.632 


651,182 


53.39 


2,047,513 


1,326,667 


64.79 


1888 . . . 


. . 1,581,992 


1,037,124 


65.56 


2,306,088 


1,451,573 


62.95 


1889 . . . 


. . 1,841,208 


902,496 


49.02 


2,279,486 


1,348,727 


59.17 


1890 . . . 


. . 2,154,906 


1,279,927 


59.40 


2,218,348 


1,448,713 


65.31 


1891 . . . 


. . 2,238,268 


1,028,306 


45.94 


1,872,322 


1,009,205 


53.90 


1892 . . . 


. . 2,256,728 


1,147,002 


50.83 


1,454,541 


763,575 


52.50 


1893 . . . 


. . 1,616,454 


782,506 


48.41 


761,381 


400,586 


52.61 


1894 . . . 


. . 1,681,507 


812,134 


48.30 


488,546 


263,662 


53.97 


1895 . . . 


. . 1,992,909 


1,042,753 


52.32 


194,727 


84,100 


43.19 


1896 . . . 


. . 1,808,001 


899,777 


49.77 








1897 . . . 


. . 1,721,376 


759,727 


44.13 








1898 . . . 


. . 1,605,089 


624,528 


38.91 








1899 . . . 


923,509 


330,135 


35.75 








1900 . . . 


. . 331,362 


113,036 


34.11 








Total . . . 


. . 34,503,322 


19,396,196 


56.22 


49,479,937 


36,045,743 


72.85 



1 Expected 


Actual 


Per cent 


First 5 years 


... 34,503,322 
... 49.479.927 


19.396,196 
36,045,743 


56.22 
72.85 








... 1 83.983.259 


55,441,939 


66.02 







326 The Medical Department 

TABLE No. 6 

Deaths from Organization to January 1, 1908 





CAUSE OF DEATH 


AGE AT DEATH 




Under 
20 


20to 
30 


30to40to50io;60io 
40 | 50 | 60 | 70 


70to 
80 


Over 

80 


Grand 
Totals 




Cancer and Sarcoma 





1 

3 
2 
6 





22 

K 
21 
30 

411 
16 

c,r,( 

54 
62 


120 

63 
20 

3S 
637 
49 

12H8 
84 
21! 


344 52.3 502 
96 135 161 
6 11 2 
23 35 29 
377 211 82 
83 82 84 
999 564 267 
100 60 39 
302 228 160 


81 

U 
14 
44 
72 
13 
59 


24 
3 

2 
1 
6 
2 


17 


1757 
555 


2 




61 


a 




172 


,S 




1771 


Q 




366 




Tuberculosis— Pulmonary . 
other than " 


3784 
350 
1047 










13 


1.333 


2438 


2.330|1849 | 1326 


519 


55 


9863 












Apoplexy & Soft, of Brain 
Encephalitis & Meningitis- 



2 



3 


21 
52 
13 

3 
38 


154 
101 

14 
20 
115 


391 
IK 
207 
45 
38 
164 


692 

82 
153 

5i 
37 

161 


705 
46 
96 
52 

77 
113 


426 
19 
4! 
11 
66 
55 


1 
9 

12 
4 


2460 
419 
644 




1K6 


if 

22 


Paralysis, cause not stated 


253 
653 








5 


IL'7 


521 


960 


11 SI 


ION! 


634 


98 


4615 










v 











2 
2 
31 

6 


23 
10 
151 

4 
12 


59 

376 
37 

46 


13: 
21 

55! 

118 
39 


132 
16 
636 
188 
28 


61 

13 

174 
8 


3 

62 
30 


413 


■£ >• 




73 


HI 

Si 5. 

5 U 


Organic Disease of Heart.. 
Arterio-Sclerosis 


2197 
551 
140 











41 


200 


529 


871 


liil III 


638 


96 


3374 








J* 







5 



n 
2 
6 
180 
13 


6 
11 
18 
4SII 
31 


10 

28 
30 

716, 

31 


21 
41 
34 

623 
42 


28 
73 
17 
51 III 
40 


26 
85 
10 

285 
8 


2 
18 

5 
55 

1 


93 




258 


~li 




120 


111 




2844 




166 


£*• 








5 


201 


546 


815 


761 


658 


114 


81 


3481 








1 




3 
2 


6 


94 
45 
21 
17 
57 


162 

1(15 
123 
73 
124 


141 

1 (( 
253 
149 
169 


81 

156 
280 
181 
149 


20 
129 

234 
146 
78 


12 
83 
95 

92 
37 


1 

17 
10 
10 

7 


512 


Intestines— Disease of 


681 
1016 


ill 


Stomach— Disease of 


627 






a 




11 


234 


5S7 


855 


846 


607 


319 


45 


3504 








V fc 









1 


3 

44 
6 


1?! 


7 
•2(13 
17 
1 
32 


13 
42S 
46 
3 
23 


26 
606 

35 
18 
15 


64 
594 

44 
108 

11 


50 
268 
18 

168 

9 


9 
38 

2 
44 




172 


IJi 
111 
ST 




2181 


Kidney— Other Diseases of 


168 
342 




104 








1 


66 


26ii 


513 


700 


821 


513 


93 


2967 












6 


2 
2 


306 

60 
23 


622 



207 

133 


631 428 

1 
260 198 

222 ( 278 


204 
26 
72 

263 


80 
413 

13 
113 


13 

492 

2 

13 


2290 


d 




932 




814 


3J 




1047 


^ 








10 


389 


962 


1113, 905 


565 


619 


520 


5083 












45 


231)1 


5514 


7115 7112 


;ii66 


1656 


988 


32887 













The Medical Department 
TABLE No. 7 

Statement Showing Growth Since Organization 



327 



Year Ending- 



Policies in 


Amount 


Force 


Insured 


137 


$ 408,800 


414 


962,100 


785 


1,544,000 


1,584 


2,370,650 


2,285 


3,076,150 


4,766 


5,902,150 


8,125 


11,217,155 


10,749 


15,041,082 


14,799 


22,517,043 


21,380 


36,539,333 


27,887 


50,039,745 


31,816 


59,608,675 


35,107 


65,186,707 


34,349 


62,425,187 


35,207 


64,182,874 


35,226 


64,692,003 


3b, 402 


65,301,021 


36,428 


67,124,215 


36,456 


67,493,191 


34,766 


64,416,847 


33,254 


61,441,014 


33,066 


61,948,888 


34,172 


64,967,081 


37,491 


74,503,740 


40,871 


83,355,424 


43,801 


92,083,093 


45,948 


98,793,982 


50,100 


110,710,861 


56,544 


127,629,903 


64,406 


147,615,323 


73,130 


172,518,891 


84,329 


202,405,923 


98,525 


238,908,807 


113,528 


275,674,753 


128,349 


312,512,603 


136,410 


325,152,947 


144,900 


340,697,569 


155,785 


364,259,235 


165,415 


384,167,829 


178,462 


413,081,370 


196,022 


457,712,738 


211,926 


497,606,125 


224,747* 


529,647,290* 


243,158* 


574,705,000* 


262,094* 


620,681,283* 


280,443* 


662,851,194* 


299,730* 


708,552,287* 


320,896* 


764,266,187* 


339,468* 


819,252,279* 


361,084* 


881,563,592* 



*June 1st, 1859 
1860 
1861 
1862 
1863 
1864 
1865 

tJan'y 1st, 1866 
1867 
1868 

1S69 

1870 
1871 
1872 
1873 
1874 
1875 
1876 
1877 
1878 

1879 

1880 
1881 
1882. 
1883 
1884 
1885, 
1886, 
1887, 
1888, 

1889 , 

1890, 
1891, 
1892. 
1893. 
1894, 
1895. 
1896. 
1897. 
1898. 

1899. 

1900. 
1901. 
1902. 
1903. 
1904. 
1905. 
1906. 
1907. 
1908. 



$ 9,335 

25,494 

56,981 

106,813 

162,258 

275,595 

593,462 

906,420 

1,748,759 

3,126,197 

4,755,419 

6,757,532 
8,991,766 
10,658,170 
12,434,528 
14,093,579 
15,513,500 
• 17,118,812 
18,062,825 
18,173,257 

17,974,879 

18,002,142 
18,346,212 
18,859,459 
19,794,672 
21,115,321 
22,528,971 
24,265,257 
26,669,878 
28,858,019 

32,672,811 

37,116,870 
42,353,913 
48,826,755 
56,236,089 
64,071,183 
73,349,708 
82,902,390 
92,633,604 
103,375,536 

115,446,643 

126,646,728 
139,512,166 
151,944,756 
165,042,435 
178,200,625 
194,777,433 
208,417,073 
221,101,714 
232,819,246 



* 6 months, f 7 months. 

* Includes only business actually paid for. 



Investments and How Made 



INVESTMENT is an obvious concomitant of life insurance. 
The reserve fund must be made productive, and within this 
simple statement is embraced a mountain of important ac- 
cessories. 

The position of the Northwestern is unique in respect of its 
history relating to investments. Its original charter, granted as 
it was in 1857 when modern questions and experiences could not 
have been prophesied, restricted the company in its investments to 
two simple classes : Mortgages on unincumbered real estate within 
the State of Wisconsin, and national, state and municipal bonds. 
This continued until 1863 when the territorial limitation as to 
real estate mortgages was removed and the power to loan to pol- 
icyholders, not exceeding one-half the annual premiums on their 
policies, was granted. Subsequently the powers of the company 
in this direction were enlarged, and the character of the securities 
in which it may now invest, and the method of making such invest- 
ments are quite fully set forth in the following excerpts from an 
address delivered by Vice President Geo. C. Markham at the 29th 
annual meeting of the Association of Agents of the company. 

"This company, under its charter and several amendments 
thereto, is authorized to invest its funds as provided in Section 
195 1 of the Wisconsin Statutes, which Section as amended reads 
as follows : 

'Every such corporation organized under the laws of this state 
may invest its funds and accumulations in stocks or bonds of the 
United States or of this state, or of any county, city, town or village, 
or duly organized school district therein, or in mortgages being first 
liens on real estate whether held in fee or as leasehold running not 
less than twenty-five years, or in fee subject to a leasehold, worth at 
least twice the money loaned thereon, or in the mortgage bonds of 
any railway or street-railway company duly incorporated and organ- 
ized under the authority of this state; and it may also make loans 
on the security of promissory notes, amply secured by pledge of any 
of the bonds in which such insurance corporations are hereby 

328 




(/<* /V&6U^6-&--rn^ 



Investments and How Made 331 

authorized to invest their funds, and every such corporation may not 
only loan to its policyholders, sums not exceeding one-half the annual 
premiums on their policies, upon notes to be secured by the policies 
of the persons to whom the loans may be made, but may also make 
loans upon the security of its own policies to an amount not exceeding 
ninety-five per cent of the cash surrender value of each such policy 
at the time of making any loan; and such corporation may invest its 
funds in other states, organized territories of the United States, and 
the District of Columbia, on like securities and under the same 
restrictions as in this state. No life insurance corporation organized 
under the laws of this state shall issue policies insuring fire, marine, 
accident or live stock risks, or do any banking business, except as 
otherwise provided by law.' 

"As regards the investments of this company, it can be stated 
as a matter of fact, that this company never has invested any of 
the funds of the policyholders in stocks of any kind. It does not 
invest in street railway bonds, nor in what are known as industrial 
stocks or bonds, although very many street railway bonds would 
be considered good security, and our charter permits the company 
to invest its funds in them. But, as a matter of fact, the company 
so far has not invested in any street railway bonds. In short, the 
assets of this company are invested almost entirely in four kinds 
of security. First, and what was originally its only investment, 
mortgages upon centrally located business and residence property 
in many of the principal cities of the middle west and some of 
the more prosperous cities of the south. Second, mortgages upon 
farms in the several states in localities that have previously been 
examined and selected as safe and desirable fields to loan in. 
Third, in municipal bonds, bonds of some of the more important 
steam railroad systems of the country — and we have a few govern- 
ment bonds remaining unredeemed. Fourth, loans to the policy- 
holders upon their policies. 

"Every farm upon which the company has made a loan has 
first been carefully examined by one of the company's Special 
Loan Agents, and his written report made thereon to the Finance 
Committee. It is the aim of the Finance Committee to vote such 
an amount upon each application as in its judgment will be well 
secured, and to assure itself that the farmer will be able not only 
to pay his interest, but pay his principal, thereby making the 
investment safe, solid and desirable. 



332 



Investments and How Made 



"I have personally visited several times all of the cities and 
towns wherein this company has made and is making loans. 
Members of the Finance Committee are expected to and do visit 
cities and examine property where large loans are wanted. This 
gives the members of the Finance Committee an opportunity to 
view localities for themselves, and to become better acquainted 
with such localities, and also enables them to consider and act 
more intelligently upon applications submitted for loans. 

"Some of our policyholders have inquired why the company 
pays our Special Loan Agents a salary instead of allowing them 
to charge a commission. These agents are put upon a salary for 
the simple reason that experience has shown that it is best and 
safest to pay these agents a fixed salary instead of allowing them 
to charge the borrower a commission. No matter how honest he 
may be or how good in his intentions, it is perfectly natural that 
an agent, if he be allowed to charge a commission, is tempted to 
recommend a loan to the committee for a larger amount than 
ought to be loaned upon a given piece of property, and years ago 
when agents were allowed to charge a commission, some of them 
yielded to this temptation. By paying an agent a salary, which 
he receives monthly, no matter whether the committee votes a 
loan recommended by him or not, all temptation is at once removed 
from such agent to recommend a loan that ought not to be made 
in order to secure his commission or compensation for his services. 
With the great number of loans the Finance Committee votes, 
upon the applications received, it would absolutely be a physical 
impossibility for the Finance Committee, or any member of it, to 
personally examine all of such securities. We necessarily must 
rely to a large extent upon the ability, honesty and intelligence of 
our Special Loan Agents. Therefore, we pay them a salary 
commensurate with the services rendered, and say to them: 'We 
want your best, conservative judgment; that is what the company 
will pay for. The Finance Committee will take the responsibility 
of voting such an amount upon each application as in its judgment 
will be safe and conservative.' 

"After a loan upon real estate has been voted by the Finance 
Committee, the borrower is required in every case to furnish the 
company a full and complete abstract of the property offered for 
security. Each and every abstract is subjected to careful and 



Investments and How Made 333 

rigid examination by our Legal department, and that department 
is required to and does certify that each and every security offered 
for a loan is absolutely free and clear of all liens and incumbrances 
of every kind and nature before any money is paid to the 
borrower. 

"As before stated, the company does not buy stocks, street 
railway bonds, industrial stocks or bonds, and therefore its bond 
buying is confined to municipal bonds and bonds issued by the 
leading steam railways. The bonds of a railroad are usually 
secured upon the franchise, the roadbed, the rolling stock, ma- 
chine shops, depots, stations, terminals, etc. Before any bonds 
issued by any railroad corporation are purchased, the Finance 
Committee usually has the opinion of the attorneys of the road 
that issued the bonds, the attorneys of the bond-house selling the 
bonds, and also the opinion of our own Counsel as to their legal- 
ity. Millions of bonds of different kinds are offered to this 
company every year that are declined, because they do not come 
up to the high grade and quality demanded by this company for 
the investment of the funds of our policyholders. 

"The company loans 95% of the surrender value of its 
policies. This kind of security is, beyond question, safe. It is 
of great benefit to our policyholders to be able to borrow money 
on their policies, and is also legitimate and safe business for the 
company. 

"Bonds and stocks of all descriptions are offered, including 
so-called industrial bonds. The industrial bond is usually a bond 
issued by a corporation that has taken over several smaller con- 
cerns by deed or otherwise to one central corporation. Such 
combinations are usually composed of some sort of manufactur- 
ing property, such as paper mills, saw mills, timber lands, logging 
railroads, shipyards, zinc and tin industries, etc. These con- 
solidated corporations issue bonds or stocks that are secured by 
mortgage upon their property, the funds thereby raised being 
used in payment for the plants and to run the business. Some of 
these stocks and bonds are undoubtedly well secured and the 
business conducted under proper and conservative management; 
many of them are not. If any of the enterprises fail, of course 
the bonds or stocks are worthless, and we all know that very 
many of them do fail. It is enough for my purpose, I think, to 



334 Investments and How Made 

state that this company, as above suggested, has not and I hope 
will not ever invest its funds in any such kind of security. Per- 
haps it is needless to say that the Northwestern has never gone 
further in investigation of this class of securities when offered, 
than to promptly decline them. 

"I have already stated the kind and quality of bonds which the 
company buys. These bonds are bought for permanent invest- 
ment and not for the purpose to trade in, or to simply buy and 
sell for speculative purposes. The bonds are carefully selected, 
and while they do not bear the highest rate of interest, they are 
of the better and safer kind of security. Bonds that bring the 
highest rate of interest are usually of such kind or quality that 
they are not considered by the careful investor as first-class 
security. 

"No officer of the company, member of the Executive or 
Finance Committees, agent or employee, has ever had or now has 
any financial interest, near or remote, in any of the securities or 
assets of this company. This company has no interest in any 
trust company, bond company, bank or any other corporation or 
association of any kind. The company must have depositories 
in which to deposit its funds that are uninvested. These funds are 
deposited in four of the leading banks of this city. Each of the 
banks where deposits are made has for years furnished and now 
furnishes what is deemed to be an ample and sufficient bond to 
protect the company against any possible loss occasioned by any 
bank failure or any disaster of any kind that may affect the 
financial condition of such bank. 

"Before any accounts or bills can be paid, proper vouchers 
for the same have to be made and signed by at least two officers 
of the company, and all the checks given by this company have 
also to be signed by at least two officers before such checks will 
be honored. Payments to the company are almost invariably made 
by checks or drafts, and the payments made by the company are 
invariably made by either check or draft. There is no opportunity 
for any of the funds of this company to go in the wrong direction, 
and I think it quite impossible under the present system that any 
funds belonging to this company and in bank or elsewhere can 
be misappropriated. 

"The question has been asked : Are mortgage loans better 



Investments and How Made 335 

investments than bonds? This question is not quite accurate 
because a certain class of bonds, such as steam railway bonds 
and street railway bonds, are generally secured by a mortgage. 
If the inquiry means, are loans made to individuals or corporations 
upon farms or city property better investments than municipal 
bonds or railroad bonds, I should say that such mortgages are 
probably no better security than well secured railway bonds or 
municipal bonds. I need not go over again the different kinds of 
security, or the nature of a bond and how secured. Nearly all of 
the bonds are subject to market fluctuations to a greater or less 
extent, but a bond bought for an investment as this company 
buys them, is not affected by a fluctuating market, for the reason 
that we do not buy bonds to sell again. A bond bought at a certain 
price today is bought upon a basis to yield a certain rate of inter- 
est to maturity, so that the company knows exactly what the 
investment will yield when it purchases a bond. 

"Under the law, our bonds have to be valued once a year. In 
estimating the value of the bonds at the end of the year, the 
market value of the bonds at the time the appraisal is made 
governs the values as fixed by the appraisers at the time. The 
market value of all bonds varies somewhat according to the 
demand for investments, and such appraisal may fix the then 
market value of the bonds held by the company a little more or 
a little less than cost to the company or as shown on the company's 
books. This appraisal is made to comply with the law that 
requires the company to furnish the Insurance department the 
appraised value of all its bonds at the end of each year, but it in 
no way affects the actual asset value of our bonds as carried on 
the company's books. No one connected with this company has 
ever received any commission or other compensation for the pur- 
chase or sale of said bonds." 

When William P. McLaren was Second Vice President, he 
closed an address on investments in the following words : "The 
result of the efficient labors of life agents has been the accumu- 
lation of an enormous fund, * * * held as a sacred trust 
for the policyholders and their families. The care of this vast 
sum, and its safe and profitable investment, not only requires 
much labor, but calls for the very best judgment in its direction 
and the utmost prudence in its methods and details. We believe 



336 Investments and How Made 

that real estate mortgages, properly selected and carefully placed, 
are the best possible investments for such a fund as is held by a 
life insurance company. 

"It is sometimes said that the Northwestern is too particular in 
its methods, and if it were not so particular, it would make more 
loans. It may be answered that the policyholders and the officers 
are alike proud to be identified with a company that is known 
everywhere as having the most perfect system of loaning in this 
country, so that it has become a by-word to say that the acceptance 
and consummation of a loan by our company imply an absolutely 
perfect title and a first-class security. We do not deny that we 
are conservative, and that our first consideration is always the 
security of our loans. With this constantly and prominently in 
view, it is no doubt true that we sometimes decline to make loans 
which would ultimately prove safe, just as the company may 
decline some insurance risks that would probably be good. 
Instances of both kinds are not infrequently quoted and called 
'great .mistakes by the company.' They may be, but if they are 
the only mistakes made by the company, arising out of judicious 
management and conservative methods, its record and results will 
continue to command the satisfaction of its policyholders, and the 
respect of every intelligent business man." 



HPft^- 1 • mm 


V 




: ■ - 

1 


' ^^^'"*^W :! »^ 




The Legal Department 



THE Counsel has general charge of the Legal, including the 
Abstract, department, and all matters pertaining thereto. 
He represents the company's interests in all suits and pro- 
ceedings to which it is a party and conducts all correspondence in 
reference to the same. He furnishes, whenever requested, to the 
Board of Trustees, or to any officer, committee or head of depart- 
ment, a written or oral opinion, as may be desired, upon any 

question arising in con- 
nection with the business 
of the company. 

He has usually been 
given supervision of the 
subject of legislation in 
the various states in 
which the company is 
transacting business. 

One of the important 
branches of this depart- 
ment covers the examina- 
tion of the legality of all 
the investments of the 
company. A corps of ex- 
aminers, most of whom 
have been admitted to the 
bar, are engaged the year 
round in examining the 
abstracts of title furnished 
as securities for loans. 
The legal work of the company was transacted by firms of 
practicing attorneys until in 1878, when it was deemed advisable 
to employ the exclusive time of an attorney, and David G. 
Hooker was selected as Counsel of the company. He was suc- 
ceeded by Charles E. Dyer, who in turn was succeeded by George 




David G. Hooker 



340 



The Legal Department 



H. Noyes, the present Counsel. J. R. Dyer is now assistant, and 
W. R. Nethercut, second assistant; A. G. Miller and H. N. 
Laflin also assist the Counsel. 





/. R. Dyer 



W. B. Nethercut 



Henry F. Tyrrell has had charge of the loan extension branch 
of the work since 1894. 

There are in the department fourteen examiners of title, two 
clerks engaged in drawing notes and mortgages, and nine stenog- 
raphers. 




H. F. Tyrrell 



The Agency System 



THE history of the agency work of The Northwestern 
Mutual Life Insurance Company cannot be fully written. 
It is impossible to more than indicate its salient features 
and to present the merest outline of its origin, methods and 
development. 

At the time of its organization, fifteen old line companies now 
doing a prosperous business had been in successful operation from 
four to twenty years. Twenty companies had been chartered by 
this state with the privilege of writing life insurance, but none 
succeeded in getting fairly launched in the business. There 
was little in the outlook for the new company to attract agents, in 
competition with old and strong companies of the east operating 
in this state, especially in view of the failure of various Wis- 
consin companies. 

In 1858, Hiram G. Wilson was employed in procuring the 
insurance necessary to entitle the company to begin business, and 
during that year was appointed General Agent, a position which 
later became equivalent to that of Superintendent of Agencies. It 
would have been so designated at the time of his appointment, had 
there been any agents to supervise. Mr. Wilson went into the 
state and picked, with great skill, men to represent the company in 
the various towns and cities. He succeeded in imbuing them with 
his own enthusiasm and his own belief in the ultimate success of 
the company. Mr. Wilson remained in this position until 1864. As 
a result of his labors, those of his agents, and the growing favor of 
the company, the insurance in force had increased to nearly six 
millions, the assets had grown to $275,595 and the work had been 
extended into Northern Illinois and Southern Minnesota. 

Mr. Wilson was followed by J. G. McKindley, who had the 
same title and who succeeded him admirably. It was during Mr. 
McKindley's administration that the business was extended into 
certain districts in Iowa, Nebraska and Michigan, and a beginning 
made in Indiana. 



344 The Agency System 

In 1865, the company entered Pennsylvania and late in that 
year began work in Massachusetts. 

In 1868, the advisability of entering Tennessee, Kentucky and 
Missouri was favorably considered and work in those states began 
in the ensuing year. 

In January 1867, the agents, then few in number, were invited 
to meet the Trustees at the home office for consideration of various 
questions of mutual interest, and as an outgrowth of that meeting, 
the agents have continued to meet annually in Milwaukee. 

In April 1866, the legislature passed a law permitting the 
company to operate anywhere in the country, and in February 
1867, by resolution of the Executive Committee, the President and 
Secretary were authorized to appoint agents in any state or terri- 
tory of the United States. 

Mr. McKindley tendered his resignation as General Agent, 
which was regretfully accepted by the Board of Trustees in May 
1867, and Heber Smith, who had since 1863 represented the 
company as agent at Watertown, Wisconsin, and later as traveling 
agent, was appointed in his place, a position which he filled with 
conspicuous success until January 1874, when Matthew Keenan 
was appointed Superintendent of Agencies, the title of the office 
being changed from that of General Agent. The work in the 
meantime had grown to large proportions, the new company 
having in force 35,226 policies, insuring $64,692,003, with assets 
of $14,093,579. During the incumbency of Mr. Keenan, which 
lasted until December 1881, the insurance in force had increased 
ten millions. The assets were nearly nineteen millions. 

In December 1881, Willard Merrill, then Secretary, was 
appointed Superintendent of Agencies, Mr. Keenan taking charge 
of the Real Estate department. Preceding Mr. Merrill's appoint- 
ment the company had safely passed the experimental stage, had 
successfully solved the problems incident to the Civil War and 
the panics of 1873 and 1879, and had reached a period which 
justified the belief that a great future was before it. Exceptionally 
strong and able men had been selected to represent it in various 
states and localities and a reputation for careful and conservative 
management of its finances, as well as a conscientious regard for 
the rights and interests of its members, had been established. 
Looking back, it seems that the time was ripe for the advent of a 



The Agency System 



345 



man with the peculiar fitness and exceptional ability, displayed by 
Mr. Merrill in the twenty-one years of his supervision of the 
Agency work. Upon the foundation strongly laid in his admin- 
istration was built a superstruc- 
ture of exceptionally high charac- 
ter and efficiency. At its close 
there were 243,158 policies in 
force, insuring $574,705,000. The 
assets had grown from $18,859,- 
459 to $139,512,166. The Agency 
force had increased and developed 
to a remarkable extent on a con- 
j|L m tinually decreasing ratio of ex- 

-£^fl Bfefeh^ ^^fc». pense. Mr. Merrill was succeeded 

^t^^^B Bi on J u ^ y : ' I 9 02 ' ^y t ' ie p resent ni " 

^^J^Lh cumbent, 11. F. Norris, who had 

been Assistant Superintendent of 
Agencies since 1894. 



Alonzo W. Kimball 



The various Superintendents 
of Agencies have been ably sec- 
onded by efficient assistants. In July, 1865, Thomas W. Buell 
became connected with the company. He had charge of the 
advertising and also assisted the Superintendent of Agencies. For 
a period prior to his resignation in July, 1882, he acted as Super- 
intendent. 

When Mr. Buell resigned, Charles B. Coe was appointed 
Assistant Superintendent, a position which he filled with con- 
spicuous merit until October 1884, when, on account of failing 
health, he was compelled to go to the territory of Colorado. He 
was appointed General Agent for that territory, continuing until 
his death, December 19, 1889. Mr. Coe was succeeded as Assist- 
ant Superintendent of Agencies by Alonzo W. Kimball, who 
began work December 1, 1884. Mr. Kimball with his enthusiasm 
for right methods and his intolerance of anything mean or incor- 
rect in life insurance work, was a tremendous factor in building up 
the high standards which have for so many years characterized 
the labors of the agents. Probably no man contributed more to 
the better class of life insurance literature than Mr. Kimball 
during the ten years he was Assistant Superintendent of Agencies. 



346 



The Agency System 




Geo. E. Copeland 



In 1894, he was appointed General Agent at Chicago and was 
succeeded as Assistant Superintendent by H. F. Norris, who had 
been connected with the department in various capacities for more 

than six years. When Mr. Nor- 
ris was elected Superintendent of 
Agencies in July, 1902, George E. 
Copeland, for twenty years con- 
nected with agency work as Gen- 
eral Agent and at the home office, 
was appointed Assistant Superin- 
tendent of Agencies, and Percy 
H. Evans, whose actuarial knowl- 
edge, supplemented by experience 
in the field, especially qualified 
him, was appointed Second As- 
sistant Superintendent of Agen- 
cies, positions still occupied by 
them. 

Almost from the beginning, 
the agency work had been con- 
ducted on what is commonly known as the General Agency plan, 
by which a state or part of a state or district, is placed under the 
supervision of a General Agent having in charge new work and 
the collection of premiums in the territory covered by his contract. 
The General Agent makes all contracts with solicitors and field 
men operating in his district and is held responsible for success 
in his field, as well as financially responsible for all business 
transacted by his agents. The results of this method of conducting 
field work have been such as to demonstrate the wisdom of 
adhering to it and to justify the expectation of its indefinite 
retention. 

New work is written and premiums collected entirely upon 
the commission basis, the income of the Agent, General or Special, 
being measured by the industry and ability with which his work 
is conducted. The rates of commission paid, as well as the condi- 
tions in contracts, are uniform throughout the entire field covered 
by company operations. As no man is appointed General Agent 
who has not already been successfully identified with the work, 
thus giving officers an opportunity to judge his character and his 



The Agency System 



347 




Percy H. Evans 



fitness, the personnel of the General Agents of the Northwestern 

has been of an exceptionally high order, embracing some of the 

best known names in the life insurance world. Men of such char- 

. acter naturally engage the assist- 

$ance of trustworthy and compe- 
*v. tent aids. This process of selec- 
tion has been pursued for nearly 
fa fifty years and has resulted in 
bringing together a body of men 
who have given the company a 
representation in their respective 
communities, which has been a 
large factor in its remarkable 

success. The results are such as 
would logically follow, not only 
in the amount, but in the char- 
acter, of the business, and the 
expense at which it is obtained. 
Of the amount, it is sufficient to 
point to the more than nine hun- 
dred millions of insurance at present upon the books, every 
dollar of which has been placed there by its agency force. The 
quality may be accurately measured by the fact that payments 
for death losses have been only 66% of the expected, according to 
the Actuaries' Table of Mortality, a percentage lower than that of 
any other company of equal age, and by the further fact that a 
larger proportion of the business written is still in force. The 
field work has for many years been conducted at a lower rate of 
expense than that of any other leading company, so that it 
has not only had the benefit of a more careful selection of risks, 
but the better class of risks have been obtained at a low cost. 
During the history of the company, its agents have collected 
and paid over to it more than $400,000,000 in premiums, besides 
acting as agents in the payment of losses, endowments, etc., 
amounting to $240,000,000. During the whole period of its his- 
tory the delinquencies have been infinitesimal, and during the 
last fifteen years, the agents have collected and remitted $321,000,- 
000 for premiums and have handled checks and drafts in payment 
of death losses, endowments and dividends to policyholders, 



348 The Agency System 

amounting to $148,000,000, a total of $469,000,000, without the 
loss to the company of a single cent. 

One of the most satisfactory features in the agency work 
is its permanent character. The General Agency system as con- 
ducted by the Northwestern does not offer any inducement for 
temporary employment, and the payment of a moderate first com- 
mission with renewals for a term of years furnishes a strong 
incentive to continuous service on the part of the entire agency 
force, both General and Special. 

This company has never attempted to procure agents from 
other companies, preferring to take up new men and develop 
them along the lines of company policy. In the working out of 
this idea, it has been enthusiastically seconded by its General 
Agents. Of the ninety-one General Agents now under contract, 
less than 20 c / ( , and of the four thousand agents, a still smaller 
proportion, have been connected with any other company. 

Meetings of agents with the officers and Trustees, which have 
been annual events for more than forty years, have done more 
than any other one thing to bring about a complete anl pleasant 
understanding between the home office and the field. These 
meetings have developed a loyalty on the part of the agents, and 
an interest in, and understanding of, their work on the part of 
the officers and Trustees, which have been large contributing 
factors to its success. At no time have the relations between 
agents and officers been more cordial, and at no time has the 
agency force been more efficient, than at present. In the last 
four years, when so many companies have suffered the loss of a 
majority of their agency force and while the work of companies 
in general showed a large reduction, the Northwestern has lost 
few, if any, agents it cared to retain. Its work for 1907 was 
much the largest, and the best in quality, of any year in its history. 



Secretary's Department 



THE Secretary's department is charged with the work of 
issuing policies, collecting premiums and with all the cor- 
respondence and incidental work connected therewith. 
The department is necessarily a large one, now employing one 
hundred and forty-nine clerks. 

For convenience, and to insure rapid and accurate transaction 
of business, the department consists of several divisions, each 
having a special line of work, and each in charge of a supervising 
clerk, who on account of long experience is able to conduct the 
work with economy and accuracy. 

As the "Application" is the foundation or starting point of 
the insurance contract, it is naturally first considered in describing 
the work of the Secretary's department. 

Applications as they are received, are sent directly to the 
Medical department. After passing scrutiny there, and receiv- 
ing the approval of the Medical Director, a photographic copy 
of each application is made, to be attached to the policy. 

This company is the pioneer in the adoption of the practice 
of making such photographic copies and the work in that line is 
interesting, not only to policyholders receiving them with their 
policies, but to other life insurance companies. 

After numerous experiments, the process now used, that 
of securing a photograph of the application by electric light on 
specially prepared paper, was adopted, and has proven satisfac- 
tory. An improvement has recently been made by which the 
process of developing the negative in a dark room is no longer 
necessary, thus effecting a saving of time and unpleasant work. 

The writing of policies involves careful selection of the cor- 
rect form, accurate checking of the premium rate, and prepara- 
tion of the preliminary policy record. 

During the year 1907, 37,899 new policies were issued, an 
average of 126 for each working day. This division of the 
Secretary's department requires the services of twenty-one clerks. 



352 Secretary's Department 

After policies become effective the collection of premiums 
payable annually, semi-annually or quarterly ( at the option of 
the insured) forms a large and important part of the work of 
this department. 

The number of policies in force December 31, 1907, was 
361,084. For each of these, at least one premium notice and one 
premium receipt must be prepared at this office each year ; for 
those who make payments semi-annually, two notices, and for 
those who have chosen quarterly payments, four. The figures 
in these notices and receipts must be carefully checked to insure 
accuracy and the premiums falling due each month must be billed 
to the agents who make the collections. 

This brief statement gives some idea of the work required 
from the collection division of the department, but conveys no 
accurate conception of the great amount of detail involved. 

In 1907, the number of collections for which notices, receipts 
and the like, were required, was 456,997, covering premiums to 
the amount of more than $30,000,000. In addition to this, the 
collection division has a large correspondence relating to renewal 
of policies ; changes in mode of payment of premiums ; restora- 
tion of lapsed policies ; changes of residence, etc. Changes of 
residence are frequent in this country. Thrifty people who carry 
life insurance do not make such changes as often as less provi- 
dent classes, but the notices of change of residence of policyhold- 
ers received at this office amount to an average of more than 
75,000 annually, requiring time and care in adjustment of the 
records. 

The reports of collections of premiums are made monthly; 
those for new business on the first of each month and for 
renewals the tenth, and special collections, restorations, etc., at 
an intermediate date. 

The work of a competent and reliable branch of the force is 
required to audit the agents' reports to make sure that the com- 
missions are computed correctly and that no error or omission 
in the report and returns for premiums has occurred. 

After the reports pass the auditing force, the premiums must 
be entered on the card records. The reports then go to the 
bookkeeper for entry in the general books. The system of book- 
keeping has been simplified and condensed by study and experi- 






Secretary's Department 353 

ence to such an extent that all entries involving premium receipts 
and interest of over $43,000,000 in 1907, are compressed into 
very small compass. 

In the early days, all policy records and premium payments 
were kept in books involving, as the business of the company in- 
creased, a large amount of detail work. In 1872, the card sys- 
tem of keeping record of premium payments was adopted, this 
company being the pioneer in the use of cards for that purpose, 
as heretofore stated. The card system was extended as rapidly 
as apprehension of disaster from abandoning the book system 
could be overcome and for many years has been in satisfactory 
use for all purposes. 

The number of cards now in use for the various branches of 
the work of this department is about 2,500,000 and is increasing 
annually with the enlargement of the company's business. To 
care for the business in its present and increasing volume, in the 
old way, would be practically impossible. 

Another division of this department has charge of changes 
of policies. These are numerous, the number for 1907 being 
11,620, an average of 38 for each working day. This work re- 
quires the same care to avoid errors as in the division for issuing 
new policies. Twelve clerks are employed for this purpose. 

In the work of this department perplexing and intricate ques- 
tions frequently arise involving the rights of beneficiaries and 
contingent beneficiaries in settlements under the various policy 
options requiring reference of some cases to the Legal depart- 
ment for solution. 



The Claim Department 



THE Claim department was established March 1872. Prior 
to that, settlement of death losses and matured endow- 
ments were made under direction of the officers. 
Upon the establishment of the department, J. N. Proeschel 
was appointed Superintendent, which position he held until the 
date of his resignation, August 1, 1907, when F. T. Zetteler suc- 
ceeded him. 

Julius N. Proeschel was born 
in Paris, France, September 16, 
1834, and educated there. Came 
to New York in September, 1850; 
engaged in teaching in New York 
and Philadelphia; married Miss 
Margaret S. Darling in Brooklyn, 
New York, August 17, 1857; re- 
turned to Paris in June i860 to 
continue work on McClintock & 
Strong's Encyclopedia, and after 
Mr. McClintock's return to the 
United States, became assistant 
secretary of the European branch 

Julius N. Proeschel ° f the United StateS Sanitar y 

Commission ; then private secre- 
tary of Hon. John Bigelow during his whole term of office as 
United States Minister to France ; then secretary of the United 
States section of the Paris Universal Exposition of 1867, besides 
working a year with Hon. William Beach Lawrence in getting out 
his French edition of "Lawrence's Wheaton" ; returned to the 
United States in May 1871, and entered the employ of the com- 
pany in June of that year, as a clerk in the Actuary's department ; 
subsequently, necessity for the same being apparent, he helped 
organize the Claim department in March 1872 and resigned 
August 1, 1907. Mr. Proeschel resides in Milwaukee. 




The Claim Department 



355 



F. T. Zetteler, who succeeded Mr. Proeschel as Superintendent 
of the Claim department, was born in Milwaukee, May n, 1866 
and after attending the public schools for a short time, entered 

into the employ of the company in 
October 1882, as a messenger 
boy in the Loan department. He 
remained in that department until 
January 1884, when he was trans- 
ferred to the Claim department, 
under Mr. Proeschel, where he 
has met constant promotion. He 
was appointed Superintendent of 
the Claim department August 1, 
1907. 

The first death loss sustained 
by the company came in 1859, as 
outlined in the events of that year. 
The first year the Claim de- 
partment was in operation there 






F. T. Zetteler ., 
were paid : 






285 

1 


death claims amounting to 

matured endowment amounting to 

Total 


$ 

$ 


606,024.94 
1,333.33 


286 


607,354.27 


In 


1907: 






2,850 
827 


death claims were paid, amounting to.... 
matured endowments amounting to 

Total 


$ 

$ 


7,884,143.37 
2,019,814.49 


3,677 


9,903,957.86 



From its organization to January 1, 1908, the company paid 
to the representatives of its deceased policyholders : 

40,286 death claims amounting to $101,391,833.66 

13,250 matured endowments amounting to 25,474,611.66 



53,536 A grand total of $126,866,445.32 

All claims are examined promptly and with exceeding care, 
and when perfected in every particular, the losses are paid at 
once. 

It sometimes happens, however, that correspondence is neces- 



356 The Claim Department 

sary before final disposition can be made. The settlement of 
cases, in proper shape when received, is usually within two or 
three days after receipt of proofs of death. 

Under a resolution of the Trustees, endowment policies which 
have been paid (excepting semi-tontine policies) can be dis- 
counted for the unexpired time, the present rate of discount being 
six per cent. Offers of discount are sent out about ten months 
in advance of maturity, and policyholders frequently avail them- 
selves of this opportunity to anticipate payment, the amount 
collected for discount in 1907 being $18,640.67. To all who 
have not discounted their policies there is forwarded a notice of 
maturity, stating the form of receipt required to be endorsed 
on the policy. Payment is promptly made on the day it becomes 
due, provided the policy itself, properly receipted, has been 
received. 

The Claim department also pays all post-mortem dividends 
and final dividends on discounted endowments, discounting the 
same from date of payment to the date when they would other- 
wise have become payable, at the current rate charged for dis- 
counting endowment policies. 

The Claim department force consists of ten persons, two of 
whom are stenographers. 



Statement by Hoel Hinman Camp 



IN recalling the names of the thirty-six citizens of Wisconsin which 
are included in the charter of The Northwestern Mutual Life 
Insurance Company in 1857, I find that I am the sole survivor. 

As the facts now recur to me, I was induced to lend my name to 
the project of organizing a life insurance company for the State of 
Wisconsin, by Edward L. Dimock, of Janesville, Wisconsin, whom I 
knew very well. I also knew General Johnston, who was active in 
organizing the company, and I remember he went all over the state 
trying to interest people in the project. Of course, I knew both 
Anson Eldred and James B. Martin of this city, who joined with me 
in permitting our names to be used as charter members. I remem- 
ber very well when S. S. Daggett was at the head of the company, 
and I knew Lester Sexton. He was a merchant here, but I did not 
know until recently that he ever was President of the company. I 
know he followed me on the Board of Trustees. I was also well 
acquainted with Hercules L. Dousman, James H. Earnest, J. J. R. 
Pease and other early Trustees. 

I was elected a Trustee of the company at the organization meet- 
ing on February 23, 1858, and continued as such until March 4, 1859. 

Following this I paid but little more attention to the company, 
simply knowing in a general way that it had located in Milwaukee, 
and I never happened to be insured in it. After Mr. Van Dyke and 
Judge Palmer had been elected Presidents of the company, and it 
had begun to grow into a big institution, in common with all other 
residents of Milwaukee, I took pride in its splendid development, 
which I watched in later years with great interest. 

Although, as I have said, much of my personal attention and all 
of my business interests were in other channels in the early days of 
my own life and that of the company, I am pleased to know that 
even in a minor way I was helpful in organizing an institution of 
which the whole nation is proud — an institution that in developing and 
growing into its present mammoth proportions, has preserved unsul- 
lied its reputation for honesty, integrity and solvency. 

As sole survivor of the thirty-six who joined in the company's 
inception, I invoke a continuance of the business policies and rules 
that accomplished this result and hope for the continued spread of the 
company's beneficence. 




Milwaukee, Wisconsin, March 26. 1908. 



Employees Twenty-five Years or More 



THE company has on its roster (exclusive of Trustees) the 
names of thirty-seven men who have served it twenty-five 
years or more. Some are now officers, others are agents 
and the remainder are home office employees. Those who are 
so employed by the company and who have been previously men- 
tioned in this history, are Henry L. Palmer, J. W. Skinner, 
Charles A. Loveland, P. R. Sanborn, J. W. Du Four, F. T. Zet- 
teler, C. S. Kitchel and W. P. Behling. 

Photographs of other present home office employees who have 
been with the company for more than a quarter of a century are 
here reproduced, making an interesting collection and exhibit. 
Photographs of existing General Agents who have devoted 
more than twenty-five years to the interests of the Northwestern 
are also reproduced, 
and to each is added 
a few words of bi- 
ography. 

There is only 
one Special Loan 
Agent who belongs 
to this class, Red- 





W. J. Doolittle. 



mond Prindiville, 
of Chicago. 



Louis Schuchardt. 





Geo. W. Young. 



Garland L. Gillett. George T. Hooley. 



Employees Twenty-five Years or More 359 



Bjl 



Charles H. Trump. 



J. O. Martin. 



John F. Tyrrell. 






K. D. Peterson. 



W. J. Holbrook. Frances L. Madden. 






Frank W. Sanborn. 



C. H. Wooster. 



Patrick Geraghty. 






Geo. H. Winne. 



H. B. Janzer. 



Geo. W. Jennings. 



360 



Employees Twenty-five Years or More 



W. V. BAKER, of Troy, New York, was first 
appointed General Agent January 1, 1880, for a 
part of Eastern New York. His contract was 
made under Matthew Keenan and has been re- 
newed at intervals since. Mr. Baker writes: 
"Twenty-eight years have enabled an intelligent 
opinion to be formed by me of the company. Its 
advance has been phenomenal, steady and safe. 
Its benefits to policyholders are unequaled. Wis- 
dom and equity have been apparent in its man- 
agement, which has produced praiseworthy 

results. It has brought honor to its agents. Its present standing is 

proof of public satisfaction and approval." 




JOHN I. D. BRISTOL, of New York City, one 
of the best known life insurance agents in the 
country, was born March 16, 1845. He began his 
connection with the business of life insurance at 
Detroit, Michigan, April 14, 1868. He became 
connected with the company in December 1880 
and in many ways and in different fields of opera- 
tion, has given evidence of his ability. An oppor- 
tunity presenting itself, Mr. Bristol was, on Octo- 
ber 1, 1883, appointed General Agent of the com- 
pany at New York City, where he is now located. 
Mr. Bristol has a splendidly equipped force of assistants and the New 
York agency of the Northwestern is the largest and best known in 
the United States. 




CHARLES TIFFANY BROCKWAY, of Syra- 
cuse, New York, was born January 25, 1847; re- 
ceived a common school and academic education; 
taught in an academy for several years, and for 
two years was Superintendent of Schools at Al- 
pena, Michigan; was local agent of the company 
from 1872 to 1877; then went to the Mutual Life 
of New York as special agent, appointing, in- 
structing and working with agents; made general 
agency contract with company August 1, 1879, 
and present field embraces central, northern and 
part of eastern New York. Four active general agents came from 
this agency, Messrs. Stone, Parsons, Markham and Pelton. 




THOMAS ARCHIBALD CARY, of Richmond, 
Virginia, is a Northwestern man by birth, the son 

C,v of Col. John B. Cary, for seventeen years prior to 
-^ | his decease on January 13, 1898, President of the 
^ 4| I Agents' Association and for many years a Gen- 

■ eral Agent of the company. T. A. Cary was born 
April 1, 1858, at Hampton, Virginia, and was 
trained under his brilliant and gifted father, for 
the life insurance business. A general agency 
contract was made with J. B. Cary & Son on 
February 9, 1883 and the younger Cary suc- 
ceeded to the agency on the death of his father. His territory in- 
cludes Virginia and a part of North Carolina. 




Employees Twenty-five Years or More 



361 



J. M. KILGORE, of Worcester, Massachusetts, 
was born in Somerset County, Maine, May 12, 
1844; started as farmer's apprentice when ten 
years old, serving one year; next three, sawed 
wood and drove stage; learned photography at 
fourteen; 1863-8 was in photographic supply busi- 
ness at Boston; then took Massachusetts general 
agency for the Widows' and Orphans' Benefit 
Life of New York; subsequently went to the 
Metropolitan, remaining until 1880, when he went 
into the fire insurance business and for a short 

time that year was with the New York Life; made general agency 

contract with the company January 1, 1881. 




M. J. MACK was born in Bavaria, Germany, 
November 15, 1831; located in Cincinnati, Ohio, 
in August 1846, and entered into mercantile pur- 
suits; became connected with the Cincinnati gen- 
eral agency of the company September 4, 1880 
and upon the dissolution of that general agency 
was made General Agent for Cincinnati and 
Hamilton County, August 1, 1882; May 1, 1901, 
formed partnership with M. W. Mack under firm 
name of M. J. and M. W. Mack. A brother, 
William J., deceased, and the following nephews: 

Lawrence W., Millard W., Ralph W. and Harry H. Mack, and S. 

Bacharach, became associated with the company through this agency. 




of men 
with a 



GEORGE H. NEWELL, of Grand Rapids, 
Michigan, began working for the Northwestern 
as a special agent under a brokerage contract in 
1878, when the company had less than 35,000 
policies in force; continued in that capacity until 
May 1, 1883, when his first contract as General 
Agent was signed, giving him the western part of 
Michigan for his territory. In preference to a 
biographical sketch, Mr. Newell Writes: "I am 
one of the proudest men in the world when I 
consider that the great Ruler over the destinies 
and companies has permitted me to remain so many years 
company whose growth has been simply phenomenal." 




GEORGE NELSON REYNOLDS, born Lew- 
iston, Maine, October 30, 1842, of Puritan stock; 
contracted typhoid fever in the army and engaged 
in soliciting life insurance while convalescing: 
was successful from the start and accepted gen- 
eral agency of the Manhattan Life in Wisconsin 
and Minnesota; returned east in 1870 as general 
agent in Philadelphia of the Union Mutual; Octo- 
ber 10, 1877, made general agency contract with 
company for sixteen counties of Pennsylvania 
with headquarters at Lancaster, where he has 
ever since lived. His territory has since been enlarged. He is the 
company's oldest living general agent in point of service. 




362 



Employees Twenty-five Years or More 




assistants, he 

first application was for 

mortgage. 



S. D. STOCKTON, of Poughkeepsie, New 
York, wrote his first application for the company 
on April 1, 1881, under the agency of Munsell & 
Corbin, of New York; at that time there were 
but five or six policies in force in the Hudson 
River counties; September 21, 1882, was appointed 
General Agent for that territory and has since 
devoted all his time and energy to the develop- 
ment of his agency. Although most of the insur- 
able men in his district are in business in New 
York and consequently not easily visited by his 
nevertheless, built up a substantial business. His 
twenty-year endowment that paid off a 



D. F. SWAIN was born in Muskingum County, 
Ohio, September 24, 1845; was reared on a farm 
and received district school advantages; enlisted 
in the army in 1864 and served until the close of 
the war; on returning to his old home, taught 
school for nine months and then accepted a posi- 
tion as bookkeeper in Indianapolis, Indiana, 
where he now resides. Having been attracted to 
the business of life insurance, Mr. Swain entered 
the service of the Northwestern and was made 
General Agent of the company with headquarters 
at Indianapolis, February 14, 1881. The photograph of Mr. Swain 
here reproduced was taken when he became a Shriner. 




W. J. WELSH, of Scranton, Pennsylvania, en- 
tered the service of the company at the age of 
twenty-eight years, as city agent under J. W. 
Howell, General Agent for Northeastern Penn- 
sylvania, with headquarters at Scranton. In May 
1882 he was promoted to the general agency for 
the same field, and has consequently served over 
twenty-six years in the capacity of General Agent, 
or a total of nearly thirty years as an agent, dur- 
ing which time, it is Mr. Welsh's proud privilege 
to state, he has never written an application for 
another company, a statement few agents can make, especially those 
who have been engaged in soliciting for a number of years. 




W. WOODS WHITE, of Atlanta, Georgia, in 
his twenty-second year, succeeded his father, the 
late Dr. William H. White, for eleven years prior 
to his death, in 1880, exclusive General Agent for 
Georgia. The new business of the agency for 
1880 was $57,000; for 1907, $2,003,000. Mr. White 
was one of the first to adopt the district agency 
organization, to the development of which he has 
given close attention. Following are his district 
agents: Thad. E. Murphy & Son, Macon; E. J. 
Costello, Augusta; R. J. Guinn, Atlanta: W. W. 
McKenzie, Columbus, and A. H. Milstead, Athens. Mr. White has 
remained continuously with the company since he entered business. 




Employees Tzventy-five Years or More 



363 



SPECIAL LOAN AGENT 

REDMOND PRTNDIVILLE, of Chicago, is the oldest acting Spe- 
cial Loan Agent in the employ of the company. Mr. Prindiville moved 
to Chicago from Detroit, seventy-two years ago, when it took twenty- 
one days to make the journey; was educated in 
the only public school then; in Chicago and after- 
wards at St. Mary's University; was one of those 
who built and operated Chicago's first railroad, 
and named its first locomotive, the "Pioneer," 
now in the Field Museum; was always foremost 
in promoting Chicago's success and at different 
times has been a member of the Board of Educa- 
tion, Assessor, Councilman, Commissioner of 
Public Works, etc.; lost his home and entire be- 
longings in Chicago fire; was appointed Special 
Loan Agent by President Palmer in 1878 and dur- 
ing his connection with the company has loaned 
nearly $100,000,000 for it; up to the panic in 1893, the company did not 
have a foreclosure in Chicago. Mr. Prindiville's son, Maurice, is the 
company's Special Loan Agent for Illinois, outside of Chicago. 

It may be explained that while the company now has a force 
of twenty Special Loan Agents, operating in the states of Colo- 
rado, Georgia, Illinois, Iowa, Indiana, Kansas, Kentucky, Michi- 
gan, Minnesota, Missouri, North Dakota, Ohio, Oregon, Wash- 
ington, South Dakota, Tennessee and Wisconsin, the system of 
special loan agencies was not inaugurated until the year 1878, 
when Mr. Prindiville was appointed. 




Officers, Trustees, Agents, Etc. 



OFFICERS: JUNE 1, 1908 

H. L. Palmer President 

George C. Markham Vice President 

J. W. Skinner Second Vice President 

P. R. Sanborn Third Vice President 

Geo. H. Noyes Counsel 

J. R. Dyer Assistant Counsel 

Wm. R. Nethercut Second Assistant Counsel 

A. S. Hathaway Secretary 

E. D. Jones Assistant Secretary 

T. J. Knox Second Assistant Secretary 

Charles A. Loveland Actuary 

J. C. Crawford Associate Actuary 

Frank C. Hemsing Assistant Actuary 

H. F. Norris Superintendent of Agencies 

Geo. E. Copeland Assistant Superintendent of Agencies 

Percy H. Evans Second Assistant Supt. of Agencies 

J. W. Fisher, M. D Medical Director 

Geo. A. Harlow, M. D Assistant Medical Director 

Wm. Thorndike, M. D Second Assistant Medical Director 

D. E. W. Wenstrand, M. D Third Assistant Medical Director 

W. R. Adams Auditor 

J. W. Du Four Cashier 

W. P. Behling Assistant Cashier 

Chas. B. Piper, M. D Confidential Home Office Repres'tive. 

PRESENT TRUSTEES 

H. L. Palmer President, Milwaukee 

Edwin Hyde Contractor, Milwaukee 

David J. Brewer Jus. U. S. Sup. Ct., Washington, D. C. 

Samuel C. Lawrence Manufacturer, Boston 

Charles Ray Capitalist, Milwaukee 

A. K. Hamilton Capitalist, Milwaukee 

F. C. Winkler Attorney and Counselor, Milwaukee 

F. F. Adams Manufacturer, Milwaukee 

John S. Ellett Pres. State Bank of Va., Richm'd, Va. 

Fred Vogel, Jr Manufacturer, Milwaukee 

*Thomas C. Lawler Capitalist, Dubuque, Iowa 

Charles Allis Manufacturer, Milwaukee 364 



Officers, Trustees, Agents, Btc. 365 

C. A. Loveland Actuary, Milwaukee 

*H. C. Urner Treas. Little Miami R. R. Co., Cin- 
cinnati, O. 

E. P. Matthews Manufacturer, Milwaukee 

Charles G. Stark Capitalist, Milwaukee 

George C. Markham Vice President, Milwaukee 

H. F. Whitcomb Capitalist, Milwaukee 

E. J. Lindsay Merchant, Milwaukee 

B. K. Miller Attorney and Counselor, Milwaukee 

Otis W. Johnson Manufacturer, Racine, Wis. 

J. W. Skinner Second Vice President, Milwaukee 

Albert H. Wiggin V. P. Chase Nat. Bank, N. Y. City 

W. D. Van Dyke Attorney and Counselor, Milwaukee 

Mitchell Joannes Wholesale Merchant, Green Bay, Wis. 

Edward B. Butler Wholesale Merchant, Chicago 

Wm. H. Hotchkiss Merchant, Buffalo 

F. W. Sivyer Pres. N. W. Mai. Iron Co., Milwaukee 

George H. Benzenberg Consulting Engineer, Milwaukee 

Fred C. Pritzlaff Wholesale Hardware, Milwaukee 

Charles H. Wacker Pres. Land Association, Chicago 

George H. Noyes Counsel, Milwaukee 

J. M. Olin Atty. and Counselor, Madison, Wis. 

Hovey C. Clarke Lumber Manufacturer, Minneapolis 

L. J. Petit Pres. Wis. Nat. Bank, Milwaukee 

E. D. Adler Merchant (David Adler & Sons), Mil. 



*Deceased April 17, 1908. Vacancies not filled. 
EXECUTIVE COMMITTEE 

H. L. Palmer, George C. Markham, J. W. Skinner, 

C. A. Loveland, F. C. Winkler, A. K. Hamilton, 

W. D. Van Dyke, E. J. Lindsay, George H. Noyes. 

H. F. Whitcomb, 

FINANCE COMMITTEE 

H. L. Palmer, George C. Markham, F. C. Winkler, 

A. K. Hamilton, W. D. Van Dyke, E. J. Lindsay. 

H. F. Whitcomb, 

TRUSTEES SINCE ORGANIZATION 

Adams, F. F., Manufacturer, Milwaukee 1890 

Adler, E. D., Merchant, Milwaukee 1907 

Alden, Alvin B., Real Estate and Abstracter, Portage, Wis . . . 1862-1864 

Alexander, O., Prest. Phoenix Ins. Co., Milwaukee 1859-1863 

Allis, Charles, Manufacturer, Milwaukee 1892 

Allis, E. P., Manufacturer, Milwaukee 1866-1877 



366 Officers, Trustees, Agents, Etc. 

Allison, William C, Manufacturer, Philadelphia 1882-1890 

Anderson, Mons., Merchant, La Crosse, Wis 1868-1872 

Baer, G. H., Grain Merchant, Baltimore 1884-1884 

Baird, Henry S., Attorney, Green Bay, Wis 1860-1868 

Barber, J. Allen, Lawyer, Lancaster, Wis 1857-1859 

Bennett, I. M., Merchant, Evansville, Wis 1862-1866 

Benzenberg, Geo. H., Consulting Engineer, Milwaukee 1904 

Bigelow, Frank G., Banker, Milwaukee 1891-1905 

Bingham, J. A., Banker, Monroe, Wis 1862-1865 

Bintlifr, James, Editor, Monroe, Wis 1857-1858 

Bonnell, James, Merchant, Milwaukee 1859-1864 

Bowen, Chauncey T., of Bowen Bros., Chicago 1865-1873 

Bremer, George, Wholesale Grocer, Milwaukee 1861-1865 

Brewer, David J., Judge Supreme Court, Washington, 

Leavenworth, Kans 1872 

Britt, O. E., Genl. Ft. Agent C. M. & St. P. Ry., Milwaukee. . 1871-1879 

Burnham, George, Manufacturer, Milwaukee 1870-1889 

Butler, Edward B., Wholesale Merchant, Chicago, 111 1904 

Camp, H. H., Banker, Milwaukee 1857-1859 

Carpenter, Matt. H., Lawyer, Beloit, Wis 1857-1858 

Case, Jerome I., Threshing Machine Mfr., Racine, Wis 1860-1892 

Cattell, J. W., ex-Auditor of State, Des Moines, Iowa 1864-1887 

Clarke, Hovey C, Lumber Manufacturer, Minneapolis 1906 

Cobb, A., Lawyer, Mineral Point, Wis 1860-1864 

Coburn, John, Lawyer, Indianapolis 1867-1871 

Cody, James, Physician, Watertown, Wis 1860-1864 

Collins, Henry W., Druggist, Janesville 1858-1859 

Conro, Albert, Prest. Manufacturers' Bank, Milwaukee 1878-1890 

Cooke, Hubbard, Real Estate Dealer, Cleveland 1888-1893 

Cottrill, Chas. M., Transportation, Milwaukee 1897-1899 

Cowen, Benjamin R., Asst. Secretary of Interior, and Banker, 

Bellaire, Ohio 1868-1884 

Crimmins, John D., Capitalist, New York City 1894-1896 

Daggett, S. S., Insurance, Milwaukee 1858-1868 

Darling, Mason C, Banker, Fond du Lac, Wis 1859-1865 

Davidson, Peyton S., Supt. Keokuk N. L. P. Co., La Crosse, 

Wisconsin 1878-1882 

Davis, George F., Packer, Cincinnati 1866-1881 

Davison, C. G., President City Railway, St. Louis 1870-1878 

Dawson, William, Banker, St. Paul 1891-1897 

Dickson, John P., Farmer and Real Estate, Janesville 1857-1858 

Dillon, John F., Judge U. S. Circuit Court, Davenport, Iowa. .1865-1881 

Dimock, Edward L., Insurance, Janesville 1857-1859 

Dixon, Luther S., ex-Chief Justice Supreme Court of Wis- 
consin, Milwaukee 1875-1885 

Doan, Seth, Merchant, Kenosha, Wis 1862-1863 

Doniphan, Joseph, Judge Chancery Court, Augusta, Ky 1872-1874 



Officers, Trustees, Agents, Etc. 367 

Doolittle, James R., U. S. Senator from Wisconsin, Racine, 

Wisconsin 1857-1858 

Dousman, Hercules L., Fur Trader, Prairie du Chien, Wis. . .1857-1859 
Durkee, Dwight, Capitalist, Prest. Exchange Bank, St. Louis. 1871-1893 

Durkee, Harvey, Farmer, Kenosha, Wis 1863-1870 

Dutcher, John A., Wholesale Grocer, Milwaukee 1859-1871 

Dyer, Charles E., Counsel, Milwaukee 1888-1905 

Earnest, James H., Farmer and Miner, Shullsburg, Wis 1857-1862 

Eldred, Anson, Lumberman, Milwaukee 1857-1861 

Ellett, John S., Banker, Richmond, Virginia 1891 

Ellyson, H. K, Prest. Richmond College, Richmond, Va. ... 1888-1891 

Farwell, J. V., Merchant, Chicago, 111 1864-1872 

Farwell, L. J., Real Estate, Madison, Wis 1857-1858 

Ferguson, David, Cashier W. M. & F. Ins. Co. Bank, Mil- 
waukee . . 1864-1892 

Field, John, Wholesale Merchant, Philadelphia 1892-1906 

Fisher, C. D., Grain Merchant, Baltimore 1885-1888 

Fisher, Lucius G., Capitalist, Beloit, Wis 1857-1859 

Fitch, W. G., Banker, Milwaukee 1885-1891 

Fuller, M. E., Agricultural Implement Dealer, Madison, Wis. 1878-1884 

Gillett, James M., Attorney, Fond du Lac, Wis 1872-1879 

Grant, James B., V. Prest. O. & G. Smelting Co., Denver. . .. 1890-1894 

Hackett, John, Capitalist, Beloit, Wis 1857-1861 

Hall, Sheldon C, Speculator, Whitewater, Wis 1858-1862 

Hamilton, A. K., Manufacturer, Milwaukee 1889 

Hastings, S. D., State Treasurer, Madison, Wis 1861-1869 

Hemphill, J. T., Banker, Sparta, Wis 1861-1865 

Hill, Robert, Capitalist, Milwaukee 1899-1903 

Hinsdale, Henry W., H. W. Hinsdale & Co., Chicago 1864-1872 

Holden, W. W., Druggist, Janesville 1857-1858 

Hooker, D. G, Counsel, Milwaukee 1878-1888 

Horton, Harvey L., Banker, New York City 1885-1888 

Hotchkiss, W. H., Merchant, Buffalo 1904 

Hutson, Solomon, Hotel Proprietor, Janesville 1857-1858 

Hyde, Edwin, Contractor, Milwaukee 1871 

Ilsley, C. F., Banker, Milwaukee 1859-1871 

Joannes, Mitchell, Wholesale Merchant, Green Bay, Wis... 1904 

Johnson, Otis W., Manufacturer, Racine, Wis 1902 

Johnston, John, Banker, Milwaukee 1891-1895—1897-1904 

Johnston, John C, Insurance, Janesville 1858-1860 

Jones, N. M., Merchant, Memphis 1873-1874 

Keenan, Matthew, Miller, Milwaukee 1871-1895 

Keep, John M., Judge First Wisconsin Circuit, Beloit, Wis. .1857-1858 

King, Edward, Secy. R. R. Co., Indianapolis, Ind 1871-1875 

Klaus, Anton, Merchant, Green Bay, Wis 1873-1877 

Knowlton, James H., Lawyer, Janesville 1857-1858 

Kuehn, Charles, State Treasurer, Manitowoc, Wis 1857-1858 



368 Officers, Trustees, Agents, Etc. 

Lappin, Thomas, Merchant, Janesville 1857-1858 

Lawler, John, Capitalist, Prairie du Chien, Wis. . 1862-1868— 1882-1891 
Lawler, Thos. C, Capitalist, Prairie du Chien, Wis., and Du- 
buque, Iowa 1891-1908 

Lawrence, Samuel C, Manufacturer, Boston 1879 

Lawrence, William A., Merchant, Janesville 1858-1858 

Lee, George W., Physician, Shullsburg, Wis 1857-1858 

Lindsay, E. J., Merchant, Milwaukee 1898 

Lloyd, William J., Merchant, Philadelphia 1864-1868 

Loveland, C. A., Actuary, Milwaukee 1893 

Ludington, Nelson, Prest. Fifth Natl. Bank, Chicago 1865-1886 

Ludlow, Arabut, Banker, Monroe, Wis 1857-1858 

McClintock, Emory, Actuary, Milwaukee 1888-1889 

McKcy, Edward, Merchant, Janesville 1857-1858 

McLaren, William P., Merchant, Milwaukee 1877-1904 

Markham, George C, Attorney and Counselor, Milwaukee. .. 1895 

Marshall, Samuel, Prest. State Bank, Madison, Wis 1859-1871 

Martin, James B„ Miller, Milwaukee 1857-1862 

Matthews, E. P., Manufacturer, Milwaukee 1894 

May, A. C, Attorney, Milwaukee 1869-1872 

Meriam, J. B., Oil Dealer, Cleveland 1884-1884 

Merrill, S. S., General Manager C. M. & St. P. Ry., Mil- 
waukee 1869-1885 

Merrill, Willard, Vice President, Milwaukee 1874-1905 

Meyer, C. J. L„ Manufacturer, Fond du Lac, Wis 1880-1890 

Millard, Joseph H., Prest. Omaha National Bank, Omaha. .. 1894-1906 

Miller, B. K., Attorney and Counselor, Milwaukee 1883-1898 

Miller, B. K., Jr., Attorney and Counselor, Milwaukee 1898 

Miller, Ezra, Postmaster, Janesville 1858-1861 

Mills, Simeon, Prest. Bank of Madison, Madison, Wis 1857-1872 

Miner, George B., Dentist, Milwaukee 1859-1871 

Mitchell, Alexander, Prest. C. M. & St. P. Ry., Milwaukee. . 1881-1887 

Mitchell, G. Stanley, Manufacturer, Milwaukee 1896-1907 

Mitchell, Geo. W., Lumberman, Milwaukee 1862-1896 

Mitchell, John, Capitalist, Milwaukee 1857-1858 

Mitchell, John L., Prest. W. M. & F. I. Co. Bank, Milwaukee. 1887-1897 

Myers, Peter, Capitalist, Janesville 1857-1858 

Nash, C. D., President National Exchange Bank, Milwaukee. 1859-1897 

Nazro, John, Wholesale Hardware, Milwaukee 1865-1869 

Newhall, Daniel, Grain Shippei , Milwaukee 1858-1864 

Nicholls, Henry A., Produce Merchant, Milwaukee 1859-1866 

Niel, James, Attorney, Janesville 1857-1860 

Noggle, David, Attorney, Janesville 1857-1858 

Northrop, George C, Cashier Racine Co. Bank, Racine, Wis. 1857-1859 

Norton, Charles, Attorney, Janesville 1858-1859 

Noyes, George H., Counsel, Milwaukee 1906 

Olin, J. M., Attorney and Counselor, Madison, Wis 1906 









Officers, Trustees, Agents, Etc. 369 

Orton, William, Prest. W. U. Telegraph Co., N. Y. City 1878-1878 

(Elected in January, 1878; died April 22, 1878.) 

Palmer, H. L., President, Milwaukee 1858 

Pease, John J. R., Lawyer and Capitalist, Janesville, Wis... 

1858-1859—1863-1870—1871-1896 

Pettit. L. J., Banker, Milwaukee 1907 

Pfister, Guido, Tanner, Milwaukee 1864-1889 

Pike, E. S., Capitalist, Chicago 1893-1905 

Pixley, B. F., Produce Merchant, Janesville 1857-1862 

Plankinton, John, Packer, Milwaukee 1868-1891 

Preston, David, Banker, Detroit 1868-1872 

Prichard, Moses S., Attorney, Janesville 1858-1859 

Pritzlaff, Fred C, Wholesale Hardware, Milwaukeee 1905 

Proudfit, Andrew, Merchant, Madison, Wis 1859-1861 

Ray, Charles, Capitalist, Milwaukee 1885 

Rice, John, Wholesale Druggist, Milwaukee 1861-1868 

Rockwell, J. S., Merchant and Banker, Oconomowoc, Wis. .. 1860-1863 

Rountree, John H., Real Estate Agent, Platteville, Wis 1857-1890 

Sawyer, Edgar P., Banker, Oshkosh, Wis 1890-1890 

Schandein, Emil, Brewer, Milwaukee 1871-1875 

Scheffer, Charles, ex-Treasurer Minnesota 1863-1875 

Scheffer, Louis, Cashier, Milwaukee 1860-1862 

Schurz, Carl, Editor, Watertown, Wis 1859-1861 

Scott, M. S., Banker, Milwaukee 1858-1863 

Scoville, Augustus H., Banker, Whitewater, Wis 1858-1859 

Seasongood, A. J., Banker, Cincinnati, Ohio 1885-1888 

Seney, George I., Prest. Metropolitan Natl. Bank, New York 

City 1878-1886 

Sexton, Lester, Merchant, Milwaukee 1858-1873 

Sheard, Titus, Manufacturer, Little Falls, N. Y 1896-1904 

Sherman, Henry B., Coffee and Spice Merchant, Milwaukee. 1874-1878 

Sibley, H. H., ex-Governor of Minnesota, St. Paul 1875-1891 

Simpson, Thomas, Attorney, Winona, Minn 1866-1870 

Sinclair, C. D., Manufacturer, Racine, Wis 1894-1899 

Sinclair, William M., Merchant, Philadelphia. ... 1863-1867— 1890-1891 

Sivyer, F. W., Prest. N. W. Malleable Iron Co., Milwaukee ... 1904 

Skinner, C. B., Attorney, Watertown, Wis 1872-1893 

Skinner, J. W., Secretary, Milwaukee 1903 

Sleeper, Joseph A., Attorney, Janesville 1857-1859 

Smith, Angus, Capitalist, Milwaukee 1874-1898 

Smith, Heber, Vice President, Milwaukee 1869-1875 

Smith, Ira B., Wholesale Grocer, Milwaukee 1899-1907 

Smith, Morris C, Merchant, Janesville 1857-1858 

Smith, W. E., ex-Governor of Wisconsin, Milwaukee 1873-1883 

Spalding, Jesse, Collector of Customs, Chicago 1883-1904 

Spaulding, S. C, Jeweler, Janesville 1858-1862 

Spencer, James C, Civil Engineer, Milwaukee 1868-1872 



37° Officers, Trustees, Agents, Etc. 

Stark, Chas. G., Merchant, Milwaukee 1894 

Steever, Mitchell, Postmaster, Milwaukee 1859-1861 

Stoughton, Luke, Real Estate, Stoughton, Wis 1857-1858 

Telfair, Jacob R., Insurance Adjuster, New York City 1888-1894 

Terry, F. H., Merchant, Milwaukee 1873-1874 

Thompson, J. E 1870-1871 

Thorp, J. G., Merchant and Mir., Eau Claire, Wis 1862-1863 

Ullmann, H. J., Cashier Bank of Racine, Racine, Wis 1857-1859 

Urner, H. C, Treas. Little Miami R. R. Co., Cincinnati 1893-1908 

Van Dyke, J. H., Attorney and Counselor, Milwaukee 1862-1904 

Van Dyke, W. D., Attorney and Counselor, Milwaukee 1904 

Van Vechten, Peter, Deputy Collector, Milwaukee 1874-1878 

Vogel, Fred, Jr., Manufacturer, Milwaukee 1891 

Wacker, Chas. H., Prest. Land Association, Chicago 1905 

Waterman, Anson P., Hardware Merchant, Beloit, Wis 1861-1902 

Whaling, W. J 1858-1859 

Wheeler, Geo. F., Banker, Waupun, Wis 1889-1905 

Whitacre, D. B., Banker, Berlin, Wis 1859-1862 

Whitcomb, H. F., Capitalist, Milwaukee 1896 

Wiggin, Albert H., Vice Prest. Nat. Park Bank, N. Y. City. ..1903 

Willard, Josiah F., Farmer, Janesville 1857-1858 

Williams, C. L., Agricultural Implement Dealer, Madison, 

Wisconsin 1872-1878 

Wilmanns, Augustus C. Insurance Agent, Milwaukee 1859-1867 

Winkler, F. C, Attorney and Counselor, Milwaukee 1889 

Wolcott, E. B., ex-Surgeon General of Wisconsin, Milwaukee. 1858-1880 

GENERAL AGENTS 

ARIZ. F O. Bristol Phoenix 

CAL. Smith, Thomas & Thomas San Francisco 

COLO. Jesse M. Wheelock Denver 

I A. B. Moody New Haven 

F. A. Griswold Hartford 

DEL. Jas. B. Owens Wilmington 

D. C. Huske & Smith Washington 

GA. W. W. White Atlanta 

rRay O. Becker Peoria 

Jas. M. Cowan Decatur 

ILL. •{ J. B. Maguire East St. Louis 

John S. Marsh Danville 

-Chas. D. Norton Chicago 

r J. O. Barber Richmond 

T. N. Harden Indianapolis 

IND. -in. B. Hunt Fort Wayne 

Warde L. Mack South Bend 

^D. F. Swain Indianapolis 



CONN. 






Officers, Trustees, Agents, Bti 



371 



IOWA. 



KAS. 
KY. 

MAINE. 
MD. 

MASS. 



MICH. 



MINN. 



MO. 



MONT. 
NO. DAK. 
N. H. 



N.J. 



N.Y. 



NEB. 



OHIO 



J. C. Garland Dubuque 

Wm. M. McKercher Sioux City 

C. D. Van Vechten Cedar Rapids 

Th. Von Rolf West Union 

B. N. Waller Des Moines 

H. L. Williams Davenport 

E. W. Poindexter Kansas City 

H. D. & C. D. Rodman Louisville 

(Geo. E. Smith Portland 

( C. R. Dunton Bangor 

Downes & Miller Baltimore 

[ Louis E. P. Smith Boston 

\ W. W. Case Springfield 

[ J. M. Kilgore Worcester 

rG. A. Dimoc Kalamazoo 

W. T. Gage Detroit 

-j Geo. H. Newell Grand Rapids 

Michael E. O'Brien Laurium 

^Percy G. Teeple Marquette 

CI. Kaufmann Minneapolis 

J L. M. Keiter St. Paul 

I B. G. Segog Duluth 

LStevenson & Melone Rochester 

{W. J. Fischer St. Louis 
Chas. Sachs Kansas City 
P. W. Terry Texarkana, Ark. 

S. W. Mo. and N. W. Ark. 

Sam D. Goza Helena 

Eugene Fretz, Jr Grand Forks 

Benj. T. Way Manchester 

( H. H. Coleman Newark 

( Sara Jardine, Cashier Trenton 

'J. F. and W. F. Atkinson Brooklyn 

Wm. V. Baker Troy 

B. G. Bennett Rochester 

Jno. I. D. Bristol New York City 

C. T. Brockway Syracuse 

H. E. Crouch Buffalo 

C. A. Pelton Binghamton 

C. H. Porter Albany 

S. D. Stockton Poughkeepsie 

'F. E. Saffold Lincoln 

So. Neb. and Wyoming. 

John Steel Omaha 

M. J. and M. W. Mack Cincinnati 

J. M. Markham Dayton 

S. H. Marvin Columbus 



372 



Officers, Trustees, Agents, Etc. 



OHIO 

OKLA. 
ORE. 



PA. 



R. I. 

SO. DAK. 

TENN. 

UTAH 

VT. 

VA. 

WASH. 
W. VA. 



WIS. 



J C. H. Parsons Toledo 

1 E. J. Stone Cleveland 

J Emmert Bros Muskogee 

( Jason C. Clark Oklahoma 

S. P. Lockwood Portland 

f Coleman & Wonsetler Norristown 

J. F. Eaton Harrisburg 

Gearhart & Bentley Lock Haven 

L. Hoffman, Cashier Philadelphia 

Stetson Leach Pittsburgh 

John R. Swengle Altoona 

G. N. Reynolds Lancaster 

W. J. Welsh Scranton 

C. C. Blanchard Providence 

J. Mallanney Sioux Falls 

Throop & Eastman Nashville 

E. F. Mills Salt Lake City 

L. S. Norton Bennington 

T. Archibald Cary (Va. & N. C.) .. Richmond 

\ T. A. Garrigues Seattle 

{ J. A. Reinhardt Spokane 

C. B. and H. M. Taylor Wheeling 

David N. Cameron Oshkosh 

Harry S. Fuller Milwaukee 

W. F. McCaughey Racine 

J. W. McGiveran Superior 

Gustav Schrage Sheboygan 

L. W. Shakshesky Madison 



SPECIAL LOAN AGENTS. 



COLO. T. A. Tuttrup Denver 

GA. Edward M. Durant Atlanta 

| Redmond Prindiville Chicago 

( Maurice Prindiville Chicago 

[ L. H. Bush Des Moines 

IOWA J M. R. Brady Sheldon 

| F. C. Fisher Cedar Rapids 

IND. F. M. Millikan Indianapolis 

KAS. H. L. P. Hillyer Topeka 

KY. Geo. W. Davy Louisville 

MINN. H. Rothschild St. Paul 

MICH. Arthur Bassett Detroit 

[ John S. Lowry St. Louis 

MO. J John W. Gish Kansas City 

[W. E. Hoag Moberly 

NEB. E. B. Stephenson Lincoln 



NO. DAK. 
OHIO 

ORE. 

& WASH. 
SO. DAK. 
TENN. 
WIS. 



Officers, Trustees, Agents, Btc. 

H. E. Thayer Fargo 

f Geo. W. Davy Cincinnati 

\ John W. Washburn Cleveland 

fGeo. S. McLaren Seattle 

M. R. Brady Sheldon, Iowa 

G. A. Maddux Nashville 

Geo. F. Markham Milwaukee 



373 



CONTENTS 



Early History of Life; Insurance; 

Page 

Antiquity of life insurance 11 

First Mortality Table 12 

Saxon guilds 12 

First policy of life insurance 13 

Tonti, Pascal and De Witt 14 

John Graunt and Dr. Halley 15 

Rev. William Assheton and the Mercers' Company 16 

The Amicable — founding of 16-17 

Charles Povey 17 

The "little goes" of insurance 17-18 

Royal Exchange and London Assurance 18 

De Moivre and his Doctrine of Chances 19-20 

Kersseboom and de Parcieux's tables 20 

Simpson, Hodgson, Morris, Dodson and Buff on 20 

Foundation of the Old Equitable 21 

Dr. Price 22 

Early Life; Insurance in the; United States 

The Presbyterian Ministers' Fund for Life Insurance 25-27 

The Corporation for the Relief of the Widows and Children 
of Clergymen in the Communion of the Church of Eng- 
land in America 27 

William Gordon pamphlet (1772) 27-32 

Insurance in Philadelphia , 32-33 

Early New York companies 33-34 

Other early life insurance companies 34 

List of companies ante-dating the Northwestern 34-35 

Life Insurance in Wisconsin 

First company, organized at Green Bay 36 

Wisconsin Marine and Fire Insurance Company 39 

List of companies created by act of legislature 39-41 

The Natural Premium Life, now The Wisconsin Life Insur- 
ance Company 42 

First regulative statute enacted 42 

Extracts from reports of ex-officio commissioners 43-45 

375 



376 Contents 

Pag-e 

First tax imposition enacted 45 

First insurance code adopted 46 

Department of Insurance created, and incumbents 46-47 

General Johnston and Charter Members 

General John C. Johnston, founder of the company 48-51 

Act of 1857 chartering the company 51 

Hoel Hinman Camp, sole surviving charter member 52, 55 

List of charter members and biographical sketches 52-69 

Organization and Removal to Milwaukee 

1858-1859. 

Resolution accepting charter 70 

First Board of Trustees 70-73 

Resignations from the board 73 

Formal preliminary organization; new officers and committees. 74 

President and Secretary authorized to borrow money 75 

Contract with General Johnston as General Agent 75-76 

Company's note for $100 extended 77 

First piece of "literature" issued by the company, and table 

of rates 78-83 

Resignation of President Sleeper and election of H. W. Col- 
lins 83 

List of organizing policyholders 84-85 

First policy issued by the company 85-87 

Sole survivors of original policyholders 88-89 

Real organization, on November 25, 1858 89 

First Whitewater Vice President elected 89 

Whitewater contract 90 

Henry L. Palmer and other Milwaukeeans elected Trustees... 91 

Removal to Milwaukee, and new officers 92-96 

Laying a Strong Foundation 

1859-1863. 

First meeting of Trustees in Milwaukee 97 

General Johnston's contract terminated 98 

C. D. Nash elected Treasurer 9S 

A. W. Kellogg elected Secretary 100 

First annual statement to governor 102-103 

Creation of Executive Committee 103 

First loss; paid with personal credit of President Daggett... 104-107 

Abrogation of Whitewater contract 107 

First real estate loan made July 9, 1860 108 



Contents 377 

Page 

Loss of the Lady Elgin 108 

Beginning of war questions 109 

Adoption of non-forfeiting policies Ill 

Hiring of first non-official employee Ill 

Removal of offices to Iron Block 112 

John H. Van Dyke elected a Trusteee 112 

Praise from Elizur Wright 112 

Heber Smith associated with the company 113 

Continuation of war questions 114 

Liberalization of company's charter 114 

First non-resident Trustee elected 115 

John H. Van Dyke elected Vice President; resigns; Dr. Wol- 

cott elected 115-116 

Site for new office building purchased 116 

William H. Farnham comes to the company 116 

Provision for first dividend 117 

Premium notes authorized 117 

Change; of Name; and General, Expansion 

1864-1869. 

Edward Ilsley elected Cashier 118 

H. G. Wilson resigns, and J. G. McKindley elected General 

Agent 118 

Annual dividend, provision for 121 

New office site enlarged 121 

William M. Sinclair elected Vice President 121 

Dr. McKnight appointed Medical Examiner 122 

Change to present name by chapter 1, Laws of 1865 123 

Office at 416 Broadway purchased 124 

Questions as to investments considered 124 

Extension into new territory 125 

Lester Sexton elected Vice President 126 

Edgar C. Jennings elected Cashier 127 

Office of Actuary created; Edward Ilsley elected 128 

First meeting of officers and agents held 128-129 

Unlimited field of action for company authorized 130 

J. G. McKindley resigns as General Agent 131 

Questions related to new office building considered 131 

Table showing growth of company 131 

Chamber of Life Insurance, company joins 132 

New office site completed, and construction of building 133 

Augustus Gaylord elected Assistant Secretary 134 

Corporate seal adopted 134 

Death of President Daggett 138 



378 Contents 

Page 

Case of Paul v. Virginia 139 

Lester Sexton elected President and Heber Smith, Vice Presi- 
dent 140 

Introduction of card system 141 

Tax and other legislation 142 

Photographic method of copying inaugurated 142 

Deposit required in Alabama 143 

Death of President Sexton 143 

John H. Van Dyke elected President 144 

New premium rates adopted 145 

New York agency established 145-146 

Five Years of Eventful History 

1870-1875. 

New standard of policy reserve adopted 149-150 

Secretary Kellogg resigns; Augustus Gaylord elected 150 

Emory McClintock elected Actuary 152 

O. E. Britt, Matthew Keenan and Edwin Hyde elected 

Trustees 152-153 

Entrance into, and withdrawal from, Canada 153 

Policy registers surreptitiously removed 154-155 

David J. Brewer elected a Trustee 155 

Prizes offered to agents 156 

Northwestern acrostic 158-159 

The Colvocoresses case 159-161 

Willard Merrill elected Secretary 161 

Investment questions receive consideration 162-166 

Henry L. Palmer elected President 167 

Oren E. Britt elected Vice President and Matthew Keenan, 

General Agent 168 

Withdrawal from California 171-172 

Deposit in Virginia 172 

Method of charging taxes adopted 172-173 

Tax and fire insurance divisions of Loan department estab- 
lished 173 

Re-insurance of Minnesota Mutual Life Insurance Company.. 174 

Depression and Recuperation 

1876-1880. 

Matthew Keenan elected Vice President to succeed O. E. 

Britt 177 

Tentative Association of Agents formed 178 

William P. McLaren elected a Trustee 179 

Agents' Association organized; list of officers 180-181 



Contents 379 

Page 

Resolution on death of Col. John B. Cary 182 

First official examination 182-185 

Legal department established; D. G. Hooker first Counsel.. 185 

Two per cent premium tax bill enacted 186-187 

Inquiry department established and commended 187 

Insurance and Investment branches separated 188 

System of Special Loan Agents inaugurated 189 

The Hillmon case 189 

D. E. Murphy becomes a solicitor 190 

Policy No. 100,000 issued 191 

Cornelius Walford visits home office 191 

Death of Dr. Wolcott 192 

Question of retiring from Missouri 193 

Return to California 194 

Special Real Estate department created 194 

First women employees 195 

Beginning of Progressive Era 
1881-1885. 

Superintendent of Agencies appointed 199 

Tontine insurance adopted 199 

List of prize-winning agents 200-202 

Danforth-Candee correspondence 202-204 

First Chicago loan office rented 205 

Time of holding annual meeting changed to July 206 

J. W. Skinner elected Secretary 206 

The case of Mrs. G 209 

W. J. Doolittle appointed Assistant Actuary 210 

Charles B. Coe, appointed Assistant Superintendent of Agen- 
cies 210 

Alden and Beck come to company 210 

Change in time of holding annual meeting 211 

Twenty-fifth anniversary showing 213 

Special investigation of Chicago risks 214 

Withdrawal from Missouri 214 

A. W. Kimball appointed Asst. Superintendent of Agencies.. 215 

Willard Merrill elected Second Vice President 215 

New office site purchased 216 

Insurance reaches $100,000,000 mark 217 

Ohio Tontine Committee visits home office 218 

Acquisition oe Second Hundred Mieeion 

1886-1890. 

First meeting in new building 223 

Five year double dividend began 223 



380 Contents 

Page 

Agents pass anti-rebate resolutions 224 

"The Successful Life Insurance Agent" 224-225 

Legislation affecting annual statements and reserve 226 

Northwestern offered first typewriter 227 

Embarrassing legislation in Nebraska 227 

Finance Committee created 228 

Company's attitude on charitable and political contributions.. 231 

Charles E. Dyer 232-233-234 

Dr. E. J. Stone and Dr. Charles B. Piper 234 

Emory McClintock resigns as Actuary 235 

Charles A. Loveland elected Actuary 235 

Charles N. Jones appointed Assistant Actuary 235 

General F. C. Winkler elected a Trustee 236 

A. K. Hamilton succeeds George Burnham, deceased, as 

Trustee 237 

The Northwestern Primer 238 

Old Insurance Building sold 238 

P. R. Sanborn appointed Second Assistant Secretary 239 

Death of Major John H. Rountree 239 

"Over Their Own Signatures" 239 

Decade; op Remarkable Growth 

1891-1900. 

Deaths on Board of Trustees 240-244 

Letter of Julius L. Clarke 244 

Death of John L. Hathaway 245 

Joseph R. Dyer appointed Assistant Counsel 246 

Contributions to "conscience fund" 246 

J. C. Crawford appointed Assistant Actuary 246 

Charles D. Nash resigns as Treasurer 246 

Cases of attempted fraud 247-249 

Death of Calvin B. Skinner 249 

George E. Copeland comes to home office 249 

Life Insurance Club 250 

Circular and Rule on Rebates 251-252 

Dwight Durkee resigns as Trustee 252 

Wm. P. McLaren elected Third Vice President 253 

The panic of '93 253 

Loyal resolutions by agents 254 

Policy loans adopted 254 

Official changes 255 

Investigation of the companj' 255-256 

Attack by Chicago Despatch 257 

George W. Mitchell, Trustee, resigns 258 

Wm. R. Nethercut appointed Second Assistant Counsel 258-259 



Contents 381 



Death of John J. R. Pease, Trustee 259 

Death of Dr. McKnight and appointment of Dr. Fisher as 

Medical Director 259 

Death of E. C. Jennings, Cashier 260 

J. W. Du Four appointed Cashier; W. P. Behling, Assistant.. 260 

Depositories of the company 261 

Withdrawal from Alabama 262 

Legislation in Kansas and Nebraska 262 

Anti-brokerage rule adopted 263 

Auditor, office of, created; W. R. Adams appointed 264 

Three per cent reserve adopted 265 

New war questions arise 265 

Death of Angus Smith, Trustee 266 

Dr. H. L. Toulmin elected Assistant Medical Director 266 

Twenty-fifth anniversary of election of President Palmer 266 

Death of D. B. Ramsey; promotion of C. S. Kitchel 267 

Increase in company's taxes 268 

Dr. Toulmin resigns; Dr. Harlow appointed 269 

Historic gavel presented to President Palmer 270 

Death of George Oxborrow and Richard M. Hackett 270 

A Period of Extremes 

1901-1908. 

Introduction to chapter 271 

Amendment to tax law 271 

Geo. C. Markham appointed Third Vice President 272 

Special mortality investigation 272 

"Field Notes" issued 272 

Office of Treasurer abolished 273 

Controversy about taxes in Kentucky 273 

Policy No. 500,000 issued to William Jennings Bryan 273 

Death of Anson P. Waterman, Trustee 274 

H. F. Norris appointed Superintendent of Agencies; George 

E. Copeland and Percy H. Evans, Assistants 274 

Ineffective campaign of conquest 275 

Investment law liberalized 275 

Bond valuation law enacted 275 

Death of George F. Wheeler, Trustee 276 

Dr. Albright resigns as Second Assistant Medical Director, and 

Dr. Thorndike and Dr. Wenstrand appointed Assistants.. 276 

Extension of time to Baltimore fire sufferers 276 

Special solicitation among Indians urged 276 

Series of deaths in 1904-1905 277 

P. R. Sanborn elected Third Vice President 277 

T. J. Knox appointed Second Assistant Secretary 278 



382 Contents 

Page 

Examination of company by Wisconsin department 278-281 

Death of A. W. Kimball, Willard Merrill and Charles E. Dyer. 281 
Office of Associate Actuary created; J. C. Crawford ap- 
pointed 281 

F. C. Hemsing appointed Assistant Actuary 282 

George C. Markham elected Vice President 282 

J. W. Skinner elected Second Vice President 282 

C. H. Watson elected Secretary 282 

Investigations and legislative proceedings considered 283 

Withdrawal from Texas 284 

George H. Noyes elected Counsel 284 

A. S. Hathaway elected Secretary; E. D. Jones, Assistant.... 285 
Extension of time to California earthquake and tire sufferers.. 285 
Annual meetings of agents at expense of company discon- 
tinued 286 

Wisconsin and northern Michigan divided into seven general 

agencies on death of W. H. Surles 286 

Table showing development by decades 287 

Withdrawal of foreign companies from Wisconsin 287 

Death of Trustees Lawler and Urner on same day 287 

Hope for company's future: — Words of Henry L. Palmer.... 288 

Liberalization of the Policy Contract 

Early provisions and restrictions in ordinary life forms 291 

Single form, and heirs at law clause adopted 292 

Temperance clause introduced 293 

Premium notes provided for 293 

Non-forfeiture clause adopted 294 

Promise of dividends inserted in policies 294-295 

Provision as to travel and residency liberalized 295 

Suicide clause removed 295 

Annual premium note plan discontinued 295 

Paid-up insurance guaranteed on default of premium 296 

Changes in form and appearance of policies 296 

Automatic paid-up policy provision adopted 297 

Restriction as to travel, occupation, etc., made inoperative- 
after two years • 297 

Guaranteed cash, loan and paid-up values adopted 298 

Privilege of changing beneficiary permitted 298 

New reserve necessitates new forms 299 

Contingent beneficiary permitted 299 

Options "A," "B" and "C," adopted 300-301 

Cash values beginning with third year, allowed 302 

Liability after one year recognized 302 

Apportionment of surplus and automatic premium loan... 302-303 



Contents 383 

Page 

Changes to conform to new laws 304 

Limited Payment Life, Endowment and miscellaneous forms 

of Insurance Contracts, and Annuities 304-313 

10-Year Life, and Endowment 304 

Change in "Temperance" clause and as to military service... 304-305 

"Heirs at law" clause omitted in endowment forms 305 

Other Limited Payment and Joint Endowments 305 

Non-participating Life and Return Premium Life 306 

Child's Endowment; Deposit Policy and Addition Life 307 

Tontine Dividend plan 308-309 

Semi-Endowment form adopted 309 

Immediate and Deferred Annuities 310 

Life Option provision adopted 310 

Renewable Term insurance introduced 310 

Insurance and Annuity adopted 311 

Partnership insurance introduced 312 

Modified Life adopted 312 

Convertible Term policy adopted 313 

The Medical Department 

Staff of the department 314-317 

Application blanks furnished by company since its organiza- 
tion 317 

Dr. L. J. Barrows makes company's first examination 317 

Mortality on original membership 318 

Dr. Lewis McKnight, first Medical Director 318 

By-Laws defining duties of Medical Director 319 

System of Medical Examiners 320 

Restrictions on account of climatic conditions 321 

Mortality south of Mason & Dixon's line 321 

Mortality to 1875 and from 1885 to 1900 321 

Comparative mortality among males and females 322 

Table showing results of general mortality counts 322 

Mortality experience on different forms of policies 323 

Table showing mortality from organization to 1900 324 

Table showing mortality for first five years and after five 

years 325 

Table showing deaths since organization to January 1, 1908.. 326 

Statement showing growth of company since organization.. 327 

Investments and How Made 

Charter and present provisions governing investments 328 

Extracts from address of Vice President Markham on in- 
vestments 328-335 

Kinds of investments made by company, enumerated 331 



384 Contents 



System of Special Loan Agents 332 

Kind and quality of bonds the company buys 333 

Method of paying loans and of repayment to the company.. .. 334 

"Are mortgage loans better investments than bonds?" 334-335 

As to valuation of bonds 335 

Extract from address of Second Vice President McLaren.... 335-336 

The Legal Department 

Duties of Counsel 339 

Former Counsels of company 339 

Present staff of department 340 

The Agency System 

First general agency under H. G. Wilson 343 

Expansion into new territory 344 

Changes in official staff 344-345 

The General Agency plan 346-347 

Secretary's Department 

Applications; photographic copies and policy writing 351 

Premium notices; collection notices and receipts, and auditing 

Agents' reports 352 

Changes in residence, etc 352 

Card record system of accounting 352-353 

Changes in policies 353 

Claim Department 

When and by whom established 354 

Biographical sketch of Julius N. Proeschel 354 

Biographical sketch of F. T. Zetteler 355 

Table showing losses paid 355 

Matured endowments, discount of, and post-mortem dividends. 356 



Statement by Floel Hinman Camp 357 

Employees twenty-five years or more 358-363 

Officers, Trustees, Agents, etc 364-373 



Personal Index 



Page 

Adams, William R 264,265 

Albright, Dr. Charles E 181,276,319 

Alden, A. B 189,210 

Austin, George F 127, 129 

Baker, W. V 360 

Barber, Joel Allen 49, 52, 53, 70 

Barrows, Dr. Lyman J 84,317,318 

Beck, William 210 

Behling, William P 260,263,358 

Bintliff, James 49.55:70,73 

Bonnell, James 97, 103, 115, 119 

Bradford, John 90 

Brewer, David J 155 

Bristol, John I. D 180,181,360 

Britt, Oren E 119,152,167,168,177 

Brockway, Charles Tiffany 360 

Brown, Dr. D. T 99,348 

Buell, Thomas W 206,345 

Burnham, George 237 

Camp, Hoel Hinman 49.55,73,92,357 

Carpenter, Matthew H 49, 55, 70, 90, 91 

Cary, John B 180,181,182 

Cary, Thomas Archibald 360 

Case, Jerome 1 244 

Cattell, J. W 228 

Chenev, Rufus, Jr 85, 107 

Coe, Charles B 210,215,345 

Collins, H. W 71, 73, 71, 83, 84, 92, 105 

Copeland, George E., 181, 249, 255, 270, 274, 
346 

Cramer, Eliphalet 90 

Crawford, J. C 246,272,281,310 

Daggett, Samuel S., 90, 91, 92, 93, 98, 104, 
105, 107, 137, 138, 139, 246, 357 

Dickson, John P 49,56,70,74,77 

Dimock, E. L., 52, 53, 56, 73, 74, 77, 83, 
84, 99, 357 

Doolittle, James R 49,56,73,91 

Doolittle, W. J 210, 358 

Dousman, Hercules L 57,65,70,357 

Drew, Clum 189 

Du Four, John W 209,260,261,358 

Durkee, Dwight 252 

Dutcher, John A 152 

Dyer, Charles E., 232, 233, 234, 281, 282, 

284, 339 
Dyer, J. R 246,340 

Earnest, James H 52,53,57,73,357 

Eldred, Anson 57,65,73,357 



Page 

Ellyson, Henry K 240 

Evans, Percy H 273, 274, 275, 346, 347 

Farnham, Wm. H 116,129,209,261 

Farwell, Leonard J 49,57,70,91 

Fisher, Dr. J. W 217,259,314,315 

Fisner, Lucius G... 58,59,70,90 

Fitch, William Grant 243 

Gage, William T 180,181 

Gaylord, Augustus 134, 150 

Geraghty, Patrick 129,359 

Gezelschap, C. H 209 

Gillett, Garland L 358 

Graham, Alexander 71,74,89,90,119 

Griswold, Joseph W 85,88,89 

Hackett, John 58, 59, 73 

Hackett, Richard M 270 

Hall, S. C 73,84,107 

Hamilton, A. K 229,237 

Harger, C. G., Jr 238 

Harlow, George A 269,314,319 

Hastings, S. D 137,138,139 

Hathaway, A. S 285,340 

Hathaway, J. L 217,245 

Hemsing, Frank C 282,312 

Holbrook, W. J 359 

Holden, Wm. Ward 53,58,70,73 

Hooker, David G 185, 186, 232, 339 

Hooley, George T 358 

Howell, J. W 181 

Hutchings, T. E 142 

Hutson, Solomon 58,65,70,74,98 

Hyde, Edwin 153 

Ilsley, Charles F 103,152 

Ilsley, Edward 118, 128, 129 

Janzer, H. E 359 

Jennings, Edgar C 127,129,260,261 

Jennings, George W 359 

Johnston, John 244,277 

Johnston, General John C, 37, 48, 70, 73, 

75, 77, 84, 85, 92, 94, 96, 97, 98, 318, 

357 

Johnston, John Henry 76,77,84 

Jones, Charles N 235,246 

Jones, E. D 285 

Kaufman, 1 180, 181 

Keenan, Matthew, 119, 152, 168, 177, 199, 
209, 217, 228, 255, 344 



3 86 



Personal Index 



Page 

Keep, John M 58,65.73 

Kellogg, A. W., 100, 101, 125, 129, 138, 140, 

ISO 

Kemper, Samuel R 122 

Kilgore, J. M 361 

Kimball, A. \\\, 180, 181, 183, 215, 224, 

239, 255, 281, 345 

Kimball, Mather D 249 

Kitchel, Courtney S 267,268,358 

Knowlton, James H., 49, 61, 70, 74, 77, 

85, 98 

Knox, T. J 278 

Kuehn, Charles 53,61,70,90,91 

Laflin, II. N 340 

Lappin, Thomas 59,61,70 

Lawler, John 137,243 

Lawler, Thomas C 287 

Lawrence, \V. A 73,83,91 

Lee, George \V 53,64,70,90,91 

Lewis, Joseph 141 

Lindsay, E. J 229 

Loveland, C. A 153, 210, 235, 289, 358 

Ludlow, Arabut 59,62,73 

Lynch, James M 134,200 

Mack, M. J 180,361 

Madden, Frances Lillian '95,359 

Makley, John F 234 

Mallanney, John 181 

Mann, Franklin 181 

Markham, George C, 119, 175, 257, 272, 

277, 2?2, 32S 

Martin & Hopkins 132 

Martin, James B 59,62,73,357 

Martin, J. 359 

May, A. C 143,144,156 

Merrill, S. S 139. 217 

Merrill, Willard, 119, 161, 163, 199, 215, 

217, 231, 252, 255, 274, 281, 344, 345 

Miller, A. G 340 

Miller, P.. K 211 

Miller, T.. K., Jr 211 

Miller, Fzra 91 

Mills, Simeon 52,59,62,73,92 

Miner, George B 92 

Mitchell, Alexander 227 

Mitchell, G. Stanley 258 

Mitchell, G. W 228,258 

Mitchell, John 63,65,70 

Moody, L. W 181 

Murphy, D. E 180,181,190 

Murphy, \V. K 181 

Myers, Peter 63.65,73 

McClintock, Emory, 152, 171, 172, 191, 194, 

199, 218, 228, 235, 306 

McKey, Edward 53,62,70,73 

McKindley, John G., 112, 118, 123, 130, 

343, 3-14 



Page 
McKnight, Lewis, 84, 99, 122, 129, 217, 259, 

317, 318 
McLaren, Win. P., 179, 199, 205, 228, 253, 

255, 257, 277, 335 
Nash, C. D., 90, 92, 98, 99, 107, 140, 228, 

246, 261 

Nethercut, W. R 258,340 

Newell, George H 361 

Newhall, Daniel 91 

Nichols, Henry A 97 

Niel, James 53, 63, 73, 74, 90, 98 

Noggle, David 51,59,63,64,73,74,91 

Norris, Henry F., 255, 274, 287, 341, 345, 

346 

Northrop, George C 59, 64, 70, 92 

Norton, Charles 70,92,97 

Norton, Charles D 181 

Norton, Leverett J 84,88 

Noyes, George H 284,337,340 

Oxborrow, George 270 

Palmer, Henry L., 10, 90, 91, 97, 98, 100, 

103, 105, 123, 129, 130, 167, 169, 187, 

188, 218, 227, 228, 234, 246, 266, 271, 

274, 287, 28S, 357, 358 

Patten, L. F 74,77 

Pease, John J. R 73,92,97,259,357 

Peck, John D in 

Peterson, K. D 359 

Pfister, Guido 236 

Pierce, Dr. C. G 318 

Pixley, Benjamin F 52,59,64,67,73 

Plankinton, John 138,243 

Poindexter, E. W 180,181 

Prichard, M. S 73,74,98 

Prindiville, Redmond 189,358,363 

Proeschel, Julius N '53,354 

Ramsey, D. B 267 

Ray, Charles 246,273 

Reynolds, George Nelson 361 

Rodman, H. D 180,181 

Rountree, George H 130,145,158 

Rountree, John H., 52, 65, 67, 73, 112, 

130, 239 

Rowley, Milton 83,85 

Russell, Hetta Merrill 195 

Sanborn, Frank W 359 

Sanborn, P. R 239,277,329,358 

Scheffer, Charles 115 

Schindler, J. F 181 

Schuchardt, L 129,358 

Schultz, Carl F. C 217 

Schurz, Carl 104 

Scott, M. S 90,91,246 

Scoville, A. H 73, 8a. 89, 119 

Sexton, Lester, 90, 92, 105, 119, 126, 138, 
140, 143. 357 



Index to Illustrations 



387 



Sheard, Titus 277 

Sibley, H. H 1 74. 243 

Sinclair, W. M 119, 121, 122, 126, 243 

Skinner, Calvin B 249 

Skinner, C. D 129 

Skinner, T. W., 129, 141, 156, 206, 209, 241, 

282, 358 
Sleeper, Joseph A., 53, 67, 68, 71, 73, 74, 

98, 105 

Smith, Edward J 178, 181 

Smith, F. H 129 

Smith, Heber, 119, 139, 140, 150, 151, 156, 

167, 344 

Smith, Louis E. P 180,181 

Smith, Morris C 53, 68, 70, 74 

Smith, \Ym. E 211 

Spalding, Jesse 272 

Spaulding, S. C 91 

Spencer, James C 133, 137, 156 

Steever, Mitchell 98 

Stevens, A. W 181 

Stockton, S. D 362 

Stone, Dr. E. J 234 

Stoughton, Luke 49,68,73,90,91 

Surles, W. H 190, 286 

Swain, D. F 362 

Thorndike, Dr. William 276, 314, 320 

Toulmin, Dr. H. L 266,269,319 

Trump, Charles H 359 

Tyrrell, Henry Franklin Preface, 340 

Tyrrell, John F 359 



Ullmann, Henry J. 
Urner, Henry C 



.65, 68, 70 
287 



Van Dyke, John H., 105, 112, 115, 123, 
144. 147, 167, 168, 357 

Van Dyke, \Y. D 229 

Van Vechten, C. D 181 

Walker, Edwin S 178,181 

Ward, J. Carlton.. 180 

Waterman, Anson P 274 

Watson, C. H 153,154,282,285 

Webb, Lindsey 181 

Welsh, W. J 362 

Wenstrand, Dr. David E. W., 276, 3:4, 

317, 321 

Whaling, Wm. J 91 

Wheeler, George F 276 

Whitcomb, H. F 229 

White, W. Woods 362 

Whittlesey, Mills 181 

Willard, Josiah F., 65, 69, 70, 71, 74, 98 

Willey, Avery S 113,129 

Williams, Robert W 217 

Wilson, H. G., 83, 84, 91, 99, 101, 103, 118, 

343 

Winkler, F. C 229,236 

Winne, Geo. H 359 

Wolcott, Dr. E. B., 90, 91, 92, 93, 99, 115, 

119, 129, 192, 246, 318 

Wolcott, Dr. O. P 99,318 

Woods, R. J 180,181 

Wooster, C. H 359 

Young, George W 129,358 

Zetteler, F. T 354,358 



Index to Illustrations 



Page 

Adams, W. R 265 

Antique Form of Insurance Contract.. 23 

Back Cover First Piece of Literature... 83 

Baker, W. V 360 

Barber, J. Allen 49 

Behling, W. P 263 

Bintliff, James 49 

Bonnell, James 119 

Bristol, John I. D 360 

Britt, Oren E 119 

Broadway, No. 416, Milwaukee 135 

Brockway, Charles Tiffany 360 

Camp, Hoel Hinman 49 

Carpenter, Matthew H 49 

Cary, Thomas Archibald 360 

Central Court 207 

Charter Members 49,53,59,6s 

Check for 1907 Wisconsin Taxes 77 



Page 

Collins, H. W 71,105 

Copeland, Geo. E 346 

Copy of Substitute for Policy No. 1...94 

Crawford, J. C 310 

Daggett, Samuel S 105 

Dickson, John P 49 

Dimock, Edward L 53 

Doolittle, James R 49 

Doolittle, W. J 358 

Dousman, Hercules L 65 

Du Four, John W 261 

Dyer, Charles E 282 

Dyer, J. R 340 

Earnest, James H 53 

Eldred, Anson 65 

Endorsement on Policy No. 1 87 

Evans, Percy H 347 

Exchange Block, Janesvillc 135 

Executive Committee Room 197 



3 88 



Index to Illustrations 



Page 

Farwell, Leonard J 49 

First Officers of the Company 71 

Fisher, Lucius G 59 

Fisher, Dr. J. W 315 



....134 
•'•••359 
....358 
.71, 119 



Gaylord, Augustus 

Geraghty, Patrick 

Gillett, Garland L 

Graham, Alexander 

Griswold, Joseph W 89 

Hackett, John 59 

Hamilton, A. K 229 

Harlow, Dr. George A 319 

Hathaway, A. S 349 

Hemsing, F. C 312 

Holbrook, W. J 359 

Ilolden, Wm. Ward 53 

Home Office of the Company 2 

Hooker, David G 339 

Hooley, George T 35S 

Hutson, Solomon 65 

Ilsley, Edward 129 

Iron Block, Milwaukee 135 

Janzer, II. E 359 

Jennings, Edgar C 127 

Jennings, George W 359 

Johnston, John C 37 

Jones, E. D 285 

Keenan, Matthew 119 

Keep, John M 65 

Kellogg, A. W 101 

Kilgore, J. M 361 

Kimball, A. W 3 45 

Kitchel, Courtney S 268 

Knowlton, James H 49 

Knox, T. J 278 

Kuehn, Charles 53 

Lappin Block, Janesville 135 

Lappin, Thomas 59 

Lee, George \V 53 

Lindsay, E. J 229 

Loveland, C. A 289 

Ludlow, Aiabut 59 

Mack, M. J 361 

Madden, Frances Lillian 359 

Main and Wisconsin Streets, (SAY. 

Corner) Milwaukee 135 

Main Street, i\o. 416, Milwaukee 135 

Markham, George C 119,175 

Martin, James B 59 

Martin, J. 359 

Members of Executive and Finance 

Committees 229 

Merrill, YVillard 119,163 

Mills, Simeon 59 



Page 

Mitchell, John 65 

Myers, Peter 65 

McClintock, Emory 306 

McKey, Edward 53 

McKnight, Dr. Lewis 317 

McLaren, Wm. P 179 

Nash, C. D 99 

Nethercut, W. R 340 

Newell, George H 361 

Niel, James 53 

Noggle, David 59 

Norris, H. F 341 

Northrop, George C 59 

Norton, Leverett J 88 

Noyes, George H 387 

Offices Occupied by the Company 135 

Office of the President 169 

Old Insurance Building, Milwaukee. . 135 

Palmer, Henry L 10,105 

Peterson, K. D 359 

Pixley. Benj. F 59 

Policy No. 1 86,87 

Policy Heads, 292, 293, 294, 295, 296, 297, 
298, 299, 300, 302 

Present Home Office 2,135 

Presidents 105 

Prindiville, Redmond 363 

Proeschel, Julius N 354 

Ramsey, D. B 267 

Receipts Showing Payments on John- 
ston Policy 95 

Reynolds, George Nelson 361 

Rountree, John H 65 

Sanborn, Frank W 359 

Sanborn, P. R 329 

Schuchardt, Louis 358 

Scoville, Augustus H 119 

Secretary's Department, Main Room.. 221 

Sexton, Lester 105, 119 

Sinclair, William M 119 

Skinner, J. W 241 

Sleeper, Joseph A 53,71,105 

Smith, Heber 119 

Smith, Morris C 53 

Stockton, S. D 362 

Stoughton, Luke 49 

Swain, D. F 362 

Thorndike, Dr. William 320 

Trump, Charles H 359 

Tyrrell, H. F 340 

Tyrrell, John F 359 

Ullmann, Henry J 65 

Van Dyke, John II 105,147 

Van Dyke, W. D 229 



Index to Illustrations 



389 



Page 

Vice Presidents 119 

View, Main Room, Secretary's De- 
partment 221 

Watson, C. H.., 154 

Welsh, W. J 3C2 

Wenstrand, Dr. D. E. W 321 

Whitcomb, H. F 229 



White, W. Woods. 



Page 

Willard, Josiah F 65,71 

Winkler, F. C 229 

Winne, Geo. H 359 

Wolcott, Erastus B 119 

Wooster, C. H 359 



■3"- 



Young, Geo. W. 
Zetteler, F. T... 



.358 



JUL 18 1308 



/ 



/ 



